Fresh-faced drone player KTEK Aerosystems surges over +100% on ASX debut

Ktek Aerosystems (ASX:KTK) has surged +107% in lunchtime trades to 41.5cps as the Israeli-backed drone tech stock’s Monday debut shakes off what has been an otherwise bloody Monday for the ASX200.

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That a drone tech stock would pop as headlines about the Iran War remain in the zeitgeist – as well as fond memories of Droneshield and Electro Optic Systems recent respective bull runs – perhaps isn’t surprising.

Widely perceived at this point even by the most out-of-the-loop as the next frontier of modern warfare, the world remains hungry for defence stocks wholemeal, part of the great ‘remilitarisation thematic’ that Australian stockbroker Bell Potter was among the first to call back in 2022.

(This article isn’t sponsored by Potter and they don’t even reply to my e-mails, but credit where credit is due.)

That the company decided to list at 20cps may have been an overly conservative estimate of what market reception would reflect. Or maybe it was deliberately an attractive price point.

At any rate, it’s one of the more successful IPO launches in recent memory; definitely more exciting than that of mattress-cum-furniture maker Koala Company, currently well below its IPO price after listing at $3.80/sh on March 31.

Regal Funds Management is among a host of Australian east-coasters backing the Israeli drone company; the fact the company is Israeli also lends to its value prop in obvious ways.

It may also be that some capital is flowing out of Droneshield, now the subject of an ASIC investigation, and into KTK. DRO was down -4% at the time of writing; and Electro Optic continues to trade below A$9/sh after running hot at multiple points YTD.

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