Key facts
- Defence drilling firm Tek4 is preparing to list on the London Stock Exchange's AIM market.
- The company intends to raise £20 million through the IPO.
- Tek4 is valued at approximately £40 million.
- Panmure Liberum is handling the IPO, expected later this year.
- The company manufactures specialised drilling machines for the aerospace and gas turbine sectors.
- Recent sales increases are attributed to geopolitical demand.
Defence drilling firm Tek4 is preparing to list on the London Stock Exchange's junior AIM market later this year, aiming to raise £20 million at a valuation of around £40 million. The company, which counts Rolls-Royce and GE among its clients, designs and manufactures specialised drilling machines for aircraft and gas turbine parts.
Sources told City AM that Panmure Liberum has been appointed to manage the IPO. Tek4, led by industry veteran Jason Duffin, has experienced a surge in sales due to increased demand stemming from conflicts in Russia and the Middle East. The company is also developing a new factory near its Leicestershire site, which is expected to boost its production capacity by approximately 80 percent.
The planned listing is seen as a positive development for the London Stock Exchange, which has seen a limited number of IPOs and a number of takeovers in the past year. In the first six months of the year, only seven firms listed on the main market and AIM, collectively raising £577 million. Bankers are actively seeking defence-related companies to bring to market, supported by government initiatives to bolster the industry and investor interest.