Defence drilling firm Tek4 gears up for London IPO

Aerospace drilling company Tek4 is preparing for an initial public offering on London's AIM market, aiming to raise £20 million at a valuation of around £40 million. The Leicestershire-based firm, which counts Rolls-Royce and GE among its customers, has appointed Panmure Liberum as bankers for the IPO expected later this year. Tek4 designs and manufactures specialized drilling machines for aircraft and gas turbine parts. The company has seen a surge in sales due to conflicts in Russia and the Middle East driving demand, and a new factory near its Leicestershire site is expected to boost production capacity by 80%. The listing comes as the London Stock Exchange seeks to attract more defence firms, with the UK government committing to increase defence spending to 3.5% of GDP by 2035.