KTEK AEROSYSTEMS MORE THAN DOUBLES ON ASX OPEN, CONFIRMING STRONG INVESTOR CONVICTION IN DEFENCE UAV GROWTH STORY
Chapter One Advisors
Highlights
- KTEK Aerosystems (ASX: KTK) has commenced trading on the Australian Securities Exchange, completing a landmark IPO that raised $10 million in under 24 hours and attracted more than $30 million in investor bids - a 3x oversubscription
- Shares opened at A$0.41 - a 105% premium to the IPO price of A$0.20 - and traded as high as A$0.465, with more than 7.79 million shares traded and turnover exceeding A$3.3 million at time of release (market remains open)
- IPO proceeds provide a well-funded platform to accelerate production capacity, onboard new Tier-1 defence customers and scale into a global defence UAV supply chain forecast to grow at ~17% CAGR through 2030
- Institutional register includes Regal Funds Management, Thorney Investment Group, VP Capital, Cyan Investment Management, Scopus Ventures and TGI Holdings, with institutions expected to hold ~50% of free float
- Board and Management to retain ~44% of the Company, with founder Dekel Keisar continuing to lead as Managing Director
- KTEK enters the listed market with FY2025 revenue exceeding A$5 million, a A$6 million contracted order book with deliveries scheduled through 2026, approved supplier status with two Tier-1 defence contractors with combined revenues exceeding US$10 billion, and production capacity expanded approximately 3x since November 2025
KTEK Aerosystems Ltd (ASX: KTK) today commenced trading on the Australian Securities Exchange (ASX), marking the Company’s transition from a high-growth private business to a publicly listed defence technology company with the capital and platform to accelerate its next phase of growth.
KTEK is a Tier-2 supplier of composite airframes and electromechanical assemblies for military UAVs, operating an asset-light "Cordless Factory" model that enables rapid production scaling without the capital intensity of a traditional defence manufacturer. The Company supplies full-turnkey sub-assemblies - integrating mechanical, electrical and firmware components into ship-ready systems - directly into the production programs of some of the world's leading Tier-1 defence contractors, in a market forecast to grow at approximately 17% CAGR through 2030.
Shares opened at A$0.41 - a 105% premium to the IPO price of A$0.20 - and reached a high of A$0.465, with more than 7.79 million shares traded and turnover exceeding A$3.3 million at time of release (12:00pm AWST / 2:00pm AEST). The market remains open at time of publication.
The IPO, managed by CPS Capital Group’s Nathan Barbarich, raised $10 million at A$0.20 per share - meeting its full subscription target in under 24 hours and ultimately attracting more than $30 million in investor bids. Institutional investors are expected to hold approximately 50% of KTEK’s free float, with the register anchored by Regal Funds Management, Thorney Investment Group, VP Capital, Cyan Investment Management, Scopus Ventures and TGI Holdings. Board and Management will retain approximately 44% of the Company, ensuring strong alignment between the founding team and shareholders as KTEK executes its growth strategy.
KTEK is led by Founder and Managing Director Dekel Keisar, a former IDF officer and Mechanical Engineer (B.Sc., Tel Aviv University) with hands-on experience across more than 20 military UAV platforms, and previously Head of UAV Structural Engineering at Israeli Aerospace Industries - one of the world's leading defence and aerospace companies.
The Board has been assembled with a specific focus on scaling defence technology businesses. Chairman Howard Digby brings 25+ years managing technology businesses in Asia-Pacific and is the founding Non-Executive Director of Elsight Ltd (ASX: ELS) - a defence-focused drone communications company that scaled from an ~A$18 million ASX IPO to a market capitalisation exceeding A$1.5 billion. Non-Executive Director Winton Willesse contributes 25+ years in capital markets across company development, corporate governance and M&A, and previously served as a Non-Executive Director of DroneShield (ASX: DRO). Non-Executive Director Chris Baxter adds 30+ years in financial services and private equity, with recent focus on Ukrainian military UAV technology, advisory roles with drone OEM Skyeton, and strong networks across UK and European defence customers and Ministries of Defence.
KTEK enters the listed market in a position of genuine commercial strength. The Company carries a A$6 million contracted order book with deliveries scheduled through 2026, supported by existing programs including a Tier-2 OEM loitering munition platform and Tier-1 OEM UAV systems. Approved supplier status has been secured with two major Tier-1 defence and aerospace companies with combined revenues exceeding US$10 billion, and production capacity has expanded approximately 3x since the Company closed its pre-IPO convertible note in November 2025. Revenue grew 70% year-on-year from FY2024 to FY2025, with FY2025 revenue exceeding A$5 million.
IPO proceeds will be deployed across US market expansion, tooling and manufacturing capability uplift, sales and marketing, and research and development - providing a well-funded platform to convert KTEK’s pipeline of Tier-1 supplier approvals into long-term programs and pursue major defence procurement cycles globally.
KTEK Managing Director and Founder, Dekel Keisar, said:
“Today is a milestone we have worked hard to reach, and I want to acknowledge the exceptional support we received throughout this process. The quality of the institutions that backed the IPO - Regal, Thorney, VP Capital, Cyan, Scopus and the Tagliaferro family through TGI Holdings - speaks to the strength of what KTEK has built and the scale of the opportunity ahead. I also want to recognise Nathan Barbarich and the entire team at CPS Capital Group, whose guidance and execution through the IPO process were outstanding. Their expertise and networks were instrumental in delivering the result we achieved.”
“The market’s response on debut has been humbling. To see the stock open at more than double the IPO price tells you something about where investors see this business going - and we intend to justify that confidence through execution. The defence UAV market is growing at a pace the industry has rarely seen - NATO member nations are committing to unprecedented levels of defence spending, drone procurement programs are expanding across the US, Europe and Israel, and Tier-1 OEMs are actively qualifying embedded suppliers who can scale with them. We have a 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. KTEK is positioned to move decisively - scaling production, converting our pipeline of supplier approvals into long-term programs, and cementing our position as a critical partner within global defence supply chains.”
CPS Capital Group Corporate Finance, Nathan Barbarich, said:
“Today’s debut has been exceptional - to see the stock open at more than double the IPO price and sustain that level through early trade is a powerful validation of the investment case we took to market. The institutional response during the IPO was already a clear signal that sophisticated investors understand the structural tailwinds behind the defence UAV supply chain and recognise that KTEK occupies a differentiated and defensible position within it. The market’s reaction on day one confirms that view extends well beyond the institutions who backed the raise. Dekel and the team have built something genuinely compelling: a commercial-stage business with proven revenue growth, a contracted order book, a scalable model, and customer relationships with some of the most respected names in global defence. We look forward to watching KTEK deliver on what is clearly a very significant opportunity.”
Global defence spending is in the midst of its strongest expansion cycle since the Cold War, and military drones are at the centre of it. NATO member nations are committing to defence budgets of 5% of GDP, the EU has launched an €800 billion defence initiative, and drone procurement programs are accelerating across the US, Europe and Israel. The military UAV market is forecast to grow at approximately 17% CAGR through 2030 - and KTEK is embedded within the supply chain that delivers it. As a proven Tier-2 supplier to leading Tier-1 OEMs, KTEK manufactures the composite airframes, electromechanical assemblies and integrated sub-systems that go into military UAV platforms - without carrying the complexity or risk of direct government contracting. The result is a business with structural exposure to one of the most compelling growth themes in global defence, and a manufacturing model capable of scaling rapidly to meet it.
Contact details:
David Tasker
Chapter One Advisors
M: +61 433 112 936
E: [email protected]
