Da Sen (HKG:1580) said controlling shareholder Wong Tseng Hon sold 119.7 million shares on Thursday, equivalent to about 10.9% of the company's issued share capital, according to a same-day Hong Kong bourse filing.

Shares of the plywood manufacturer jumped nearly 27% in Friday morning trade.

Following the disposal, Wong's stake fell to 622.5 million shares, or about 56.8% of the issued share capital, from 67.7%, though he remains a controlling shareholder.

The company said the transaction is not expected to have any adverse impact on its business operations or financial position.