KTEK AEROSYSTEMS SET TO LIST ASX MONDAY AS $30M INVESTOR DEMAND SIGNALS DEFENCE UAV INFLECTION

Chapter One Advisors

Highlights

• KTEK Aerosystems (ASX: KTK) will commence trading on the Australian Securities Exchange on Monday, 18 May 2026 at 11:00am AEST
• The Company’s $10 million IPO closed 3x oversubscribed, attracting more than $30 million in investor bids - with institutional demand exceeding the entire book
• Institutional investors expected to hold ~50% of free float, including Regal Funds Management, Thorney Investment Group, VP Capital, Cyan Investment Management, Scopus Ventures and TGI Holdings (Tagliaferro family office)
• Board and Management to retain ~44% of the Company, ensuring strong founder alignment with shareholders
• IPO priced at A$0.20 per share, implying a pro-forma market capitalisation of A$28 million at listing, with 140 million shares on issue
• Already commercial - revenue has grown more than 300% over the past two financial years, with FY2025 revenue exceeding A$5 million

KTEK Aerosystems Ltd (ASX: KTK) today confirmed its listing on the Australian Securities Exchange, with trading to commence at 11:00am AEST on Monday, 18 May 2026 under the ticker KTK.

The listing follows an oversubscribed IPO that met its $10 million target in under 24 hours, ultimately drawing more than $30 million in investor bids - a 3x oversubscription driven predominantly by institutional demand. Institutional investors are expected to hold approximately 50% of KTEK’s free float at listing, with the register anchored by Regal Funds Management (which participated in both seed and IPO rounds), Thorney Investment Group, VP Capital, Cyan Investment Management, US-Israeli defence and technology fund Scopus Ventures, and TGI Holdings, the family office of Anton Tagliaferro.

KTEK will remain strongly founder-led following listing, with Board and Management retaining approximately 44% of the Company. The IPO was priced at A$0.20 per share, with 140 million shares on issue, implying a pro-forma market capitalisation of A$28 million at listing. The offer was led by CPS Capital Group’s Nathan Barbarich as Lead Manager and Corporate Advisor.

KTEK is a Tier-2 defence supplier of composite airframes and electromechanical assemblies for military UAVs. The Company delivers full-turnkey (FTK) sub-assemblies - integrating mechanical, electrical and firmware components into ship-ready systems - directly into the production programs of Tier-1 and Tier-2 defence contractors. Because customers design their programs around KTEK’s specifications from early stages, switching suppliers requires re-engineering, re-qualification and re-testing, creating strong revenue visibility and genuine customer stickiness.

The Company operates an asset-light “Cordless Factory” model, retaining engineering and quality control in-house while outsourcing physical manufacturing to a global network of certified aerospace partners across Israel, Europe, Thailand and the United States. This structure allows KTEK to scale production rapidly in response to new customer demand without the capital expenditure of a traditional defence manufacturer. 

By distributing production across multiple countries, the model also reduces single-point supply chain risk. Beyond defence, KTEK already supplies agricultural and delivery drone operators, with management identifying the commercial UAV market as a total addressable opportunity that may ultimately exceed the military segment. Revenue has grown more than 300% over the past two financial years, with FY2025 revenue exceeding A$5 million and production capacity expanding approximately threefold since late 2025.

KTEK Managing Director and Founder, Dekel Keisar, said:

“Listing on the ASX marks the start of the next chapter for KTEK. The demand we saw during the IPO - more than $30 million in bids for a $10 million raise - reflects the conviction institutional investors have in the structural growth of the defence UAV supply chain, and in KTEK’s position within it. Having grown revenue more than 300% over the past two years, we enter the market focused on execution: scaling production, onboarding new Tier-1 customers, and cementing our position within global defence supply chains.”

About KTEK Aerosystems

KTEK Aerosystems (ASX: KTK) is a Tier-2 supplier of composite airframes and electromechanical assemblies for military and commercial UAVs. The Company supplies full-turnkey (FTK) sub-assemblies that integrate mechanical, electrical and firmware components into ship-ready systems for Tier-1 and Tier-2 defence contractors globally. KTEK operates a scalable, asset-light “Cordless Factory” model, retaining engineering design and quality assurance in-house while leveraging a global network of certified manufacturing partners. Positioned as a “picks and shovels” supplier into the defence ecosystem, the Company benefits from structural tailwinds in global military spending and UAV adoption without the complexity of direct government contracting. Beyond defence, KTEK also supplies agricultural and delivery drone operators, with the commercial UAV market representing a further growth dimension independent of defence budget cycles.

KTEK is led by Founder and Managing Director Dekel Keisar, a defence engineer with hands-on experience across more than 20 military UAV platforms and former 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 within global UAV supply chains. Chairman Howard Digby brings a proven track record in this space, having served as a founding Non-Executive Director of Elsight Ltd - a defence-focused drone communications company that grew from an ~A$18 million ASX IPO to a market capitalisation exceeding A$1.5 billion. Director Chris Baxter adds deep operational UAV sector knowledge, including advisory roles with leading drone OEM Skyeton and direct exposure to the Ukrainian defence market - currently the most active real-world testing environment for military UAV technology in the world.

David Tasker
Chapter One Advisors
M: +61 433 112 936
E: [email protected]