KTEK AEROSYSTEMS LTD (ASX:KTK) has made a strong debut on the ASX after completing a heavily oversubscribed $10 million initial public offering, with shares more than doubling on opening trade as investors backed the company’s defence UAV growth strategy.
The defence technology company listed at $0.20 per share and opened at $0.41, representing a 105% premium to the IPO price, before reaching an intraday high of $0.465. More than 7.79 million shares had changed hands by midday, generating turnover exceeding $3.3 million.
The IPO, managed by CPS Capital Group, reached full subscription within 24 hours and ultimately attracted more than $30 million in bids, making the offer around three times oversubscribed.
Defence UAV manufacturing focus
KTEK operates as a Tier-2 supplier of composite airframes and electromechanical assemblies for military unmanned aerial vehicles (UAVs).
The company manufactures integrated sub-assemblies for Tier-1 defence contractors, supplying components used in military drone systems. Its “Cordless Factory” production model is designed to rapidly scale manufacturing capacity without the heavy infrastructure requirements of traditional defence manufacturing.
KTEK said the global military UAV market is forecast to grow at around 17% compound annual growth through to 2030, supported by rising global defence spending and expanding drone procurement programs across the US, Europe and Israel.
Founder and managing director Dekel Keisar, a former Israeli Defence Force officer and former head of UAV structural engineering at Israel Aerospace Industries, continues to lead the business following the IPO.
Managing director and founder of KTEK Aerospace Dekal Keisar (centre), with KTEK executives Ron Halevi (left) and Eyal Epstein (right).
Funds to support expansion
Proceeds from the IPO will be directed toward expanding KTEK’s US market presence, increasing tooling and manufacturing capability, strengthening sales and marketing activities and advancing research and development programs.
The company said the additional capital would allow it to scale production capacity and pursue larger defence procurement opportunities globally.
Institutional investors are expected to hold around 50% of the company’s free float, with backing from Regal Funds Management, Thorney Investment Group, VP Capital, Cyan Investment Management, Scopus Ventures and TGI Holdings. Board and management will retain about 44% ownership.
Commercial pipeline already established
KTEK enters the public market with FY2025 revenue exceeding $5 million and a contracted order book worth $6 million scheduled for delivery through 2026.
The company has secured approved supplier status with two Tier-1 defence and aerospace contractors with combined revenues exceeding US$10 billion. Production capacity has also expanded around threefold since November 2025.
Revenue increased 70% year-on-year from FY2024 to FY2025, according to the company.
Keisar said the company intended to use the strong market support as a platform for further growth.
“The market’s response on debut has been humbling,” he said.
“We have a $6 million contracted order book, approved supplier status with two of the world’s leading defence contractors, and production capacity that has already expanded 3x.”