Military drone parts maker KTEK Aerosystems Ltd (ASX: KTK) has filled its $10 million initial public offering in less than 24 hours, attracting more than $30 million in investor bids as institutional backers scramble for exposure to the booming defence UAV (unmanned aerial vehicle) supply chain.

The three-times oversubscription sets the stage for the company's ASX listing on 18 May 2026 with an IPO price of 20c per share giving KTEK a pro-forma market capitalisation of $28 million.

KTEK is a Tier-2 defence supplier specialising in composite airframes and electromechanical assemblies for military unmanned aerial vehicles.

The company, which was founded in Israel and incorporated in Australia with a headquarters in Perth for the IPO, operates what it calls a "Cordless Factory" model - an asset-light production network spanning facilities in Australia, Israel, Portugal and the Netherlands, with a US operation planned.

The IPO attracted heavyweight institutional backing from Regal Funds Management, which participated in both seed and IPO rounds, alongside Thorney Investment Group, VP Capital, Cyan Investment Management, Scopus Ventures and TGI Holdings, the Tagliaferro family office.

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