Ingdan (HKG:0400) said the Hong Kong Stock Exchange has confirmed it may proceed with the proposed spin-off and A-share listing of its subsidiary Shenzhen Comtech, according to a Tuesday bourse filing.

Shares of the tech firm gained over 5% in Wednesday morning trade.

Comtech plans to issue new shares and list on a Chinese stock exchange, which would reduce Ingdan's equity interest and constitute a deemed disposal under the listing rules, the filing said.