Kunming Dianchi Water Treatment (HKG:3768) said a Chinese court plans to auction 58 million company shares held by controlling shareholder Kunming Dianchi Investment, according to a Tuesday Hong Kong bourse filing.

Shares of the water treatment company fell more than 5% in late morning trade on Wednesday.

The shares to be auctioned represent about 5.64% of the company's total share capital.

The company said the judicial auction is scheduled to take place on JD.com's auction platform from June 15 to June 16, unless extended due to bidding activity.

If completed, Kunming Dianchi Investment's stake in the company will fall to about 37.79% from 43.42%.