Quali-Smart (HKG:1348) said Yael Capital Management plans to sell up to 5 million shares of the firm by March 13 to meet Hong Kong's listing requirement, according to a filing with the city's bourse Tuesday.

Shares of the toy maker gained over 3% in morning trade Wednesday.

Yael Capital held nearly 1.11 billion shares of the firm, representing 75.13% of the business and leaving 24.87% of the company's issued share capital in public hands, below the public float listing requirement of 25%.

The stocks to be sold by the shareholder represent 0.33% of the toy maker's issued share capital, Quali-Smart said.