Zhong Ju Investment's (HKG:1959) controlling shareholder plans to reduce its stake by selling up to 159 million shares, representing no more than 30% of the company's issued share capital, according to a Wednesday filing with the Hong Kong bourse.
The controlling shareholder, MSINT, intends to carry out the sale primarily through a placing within three months to meet personal funding needs.
It currently holds about 376.9 million shares, representing a 71.1% stake in the company.
The company said the planned sale will not result in a change of control, with MSINT remaining the controlling shareholder.
Shares of the investment firm were down over 7% in Thursday's midday trade.