Telecommunications services provider Neolink Cyber Technology (Holdings) chairman and founder Wong Chit-on is to dispose of a major stake in the company, according to sources. If completed, the deal would be the second major sell-down by a controlling shareholder of a Growth Enterprise Market-listed company within two weeks. Trading of Neolink shares was suspended pending an announcement in relation to a change in shareholding of its controlling shareholder and the resignation of a director. Neolink directors were not available for comment. Mr Wong acquired 192.92 million shares, or 34.45 per cent of Neolink, in October 1999. The company's prospectus said he paid US$22,967.12. At the last trading price of 60 HK cents, his stake was valued at HK$115.75 million. Operating on the mainland, Neolink provides transportation fleet management radio-trunking technology, solutions that allow telemedia operators to provide voice information to consumers, as well as Internet solutions. It lost HK$7.99 million last year, compared with a net profit of HK$5.16 million in 1999. It booked a net profit of HK$60,000 in the first half this year. Early in June, Neolink told investors it was under Securities and Futures Commission investigation for possible market manipulation, following substantial rises in the price and trading volume of its shares. Despite the bursting of the technology investment bubble which hit most GEM-listed firms, its share price rose to as high as HK$1.97 on June 1. That was 358 per cent higher than its market debut price of 43 HK cents on July 25 last year. The latest price of 60 HK cents is 69 per cent up on a year earlier despite having fallen 56.2 per cent in the past month. Mr Wong was barred from disposing of any shares in the first six months after the listing. He was allowed to sell a restricted number of shares in the subsequent six months. All moratoriums on his share sales have expired. Late last month, GEM-listed enterprise software-seller Grandmass Enterprise Solution chairman Patrick Yue Chung-wing sold most of his shares two weeks after the sale moratorium expired. Under a proposed revision of GEM listing rules, initial management shareholders will not be able to sell any shares during the minimum 12-month moratorium.