CSC Holdings (HKG:0235, SGX:C06) said its wholly owned unit agreed to subscribe for 255,000 convertible preference shares in AccX Limited for about $4.37 million, according to a Thursday Hong Kong bourse filing.

Hong Kong-listed shares of the engineering services provider surged over 17% in Friday morning trade.

The investment will give CSC an indirect 51% stake in AccX, which will become a non-wholly owned subsidiary of the group upon completion.

Proceeds from the investment will be used to repay start-up loans, fund working capital and R&D, and support expansion, CSC said.

The company added that the acquisition aligns with its strategy to diversify into Southeast Asia's financial services market and may create synergies with its earlier purchase of Citystate Savings Bank in the Philippines.

AccX and its affiliates provide digital payment services in Southeast Asia, the filing said.