KTEK Systems, a specialist manufacturer of military UAV sub-assemblies and composite airframes, has successfully completed an oversubscribed Seed Round, raising $2.5 million as it prepares for a planned ASX initial public offering in early 2026.
The company initially sought to raise $1.5 million, with strong demand from Australian small-cap funds, family offices, high-net-worth investors and institutional participants pushing the final raise well above target. Regal Emerging Companies Fund participated as a significant cornerstone investor.
The Seed Round was completed via a convertible note that will convert at a fixed price of 10 cents per share, representing a 50 per cent discount to the company’s planned 20-cent IPO price. Proceeds will be used to accelerate global production scale-up, further develop KTEK’s proprietary “Cordless Factory” manufacturing model, and support IPO readiness ahead of a targeted Q1 2026 listing.
As part of its pre-IPO strategy, KTEK Systems plans to enter an exclusive option agreement to acquire KTEK Ltd in Israel at the time of listing, consolidating the group’s global operations under a single ASX-listed entity.
Founded in 2019 by former Israel Aerospace Industries UAV structural integrity head Dekel Keisar, KTEK operates as an embedded supplier to multiple UAV original equipment manufacturers, providing full-turnkey sub-assemblies and airframes for tactical UAV and intelligence, surveillance and reconnaissance platforms. The company’s asset-light manufacturing framework combines in-house engineering and quality assurance with a network of certified production partners across Israel, Europe and other strategic regions.
KTEK’s model is designed to deliver Tier-1 aerospace quality standards without the capital intensity typically associated with defence manufacturing, enabling rapid scalability, supply-chain resilience and capital efficiency as global UAV production accelerates.
The Seed Round comes amid sustained growth in global defence spending on unmanned systems, driven by advances in autonomy, artificial intelligence and battlefield integration. UAV platforms are increasingly central to modern military capability, supporting surveillance, communications and tactical operations across multiple theatres.
KTEK founder and chief executive Dekel Keisar said the oversubscribed raising reflected confidence in both the company’s technology and its position within the global UAV supply chain.
“The global defence market is undergoing a generational shift, with demand for UAV systems accelerating rapidly,” Keisar said. “This funding allows KTEK to scale alongside our customers and position the company strongly ahead of our planned IPO.”
CPS Capital lead manager and corporate adviser Nathan Barbarich said investor demand highlighted both the strength of the management team and the scale of the opportunity.
“KTEK represents one of the more compelling early-stage defence engineering opportunities we have seen,” Barbarich said. “The Seed Round’s success underscores the company’s momentum as it moves toward an ASX listing in 2026.”
