TEK4, a British advanced manufacturing company specialising in laser and electrical discharge machining technologies, saw its shares surge nearly 50 percent on their first day of trading on the London stock market. The Blaby, Leicestershire-based firm, which produces precision drilling machines used to create micron-scale holes in turbine blades, attracted significant investor interest as it listed on the AIM market on October 26.
The company’s machinery is critical in cooling turbine blades to enable them to operate at extreme temperatures, serving customers in the gas turbine power sector and aerospace industry. TEK4 counts major industrial players such as GE Vernova, Siemens, Rolls-Royce, General Electric, Pratt & Whitney, and Safran among its client base. Its technology supports engines in power plants as well as passenger and military aircraft.
TEK4 issued 21 million shares priced at £2 each, valuing the company at approximately £42 million. Shares closed at 295 pence by the end of trading, marking a 47.5 percent increase on the day. The sale was reportedly heavily oversubscribed, with blue-chip investors acquiring stakes up to 5 percent. Jason Duffin, founder and chief executive, retains a 29 percent holding worth over £17 million following the float.
Duffin emphasised the growing demand for TEK4’s technology as aerospace and power-generation industries pursue engines capable of higher temperatures and improved efficiency. “The technology behind cooling systems is increasingly vital,” he said, highlighting the firm’s intellectual property position. He also noted that the public listing would help the company maintain operational independence and attract engineering talent, rather than succumbing to private equity buyout offers.
Employing around 70 people, TEK4 reported a tripling of operating profits to £4.4 million and nearly doubled revenues to £16 million last year. The company anticipates sales doubling again within the next three years. It is already expanding production capacity by opening a second assembly line.
TEK4's market debut comes amid an industry shift toward more reliable energy generation, driven partly by demand from data centers powering artificial intelligence technologies. The company’s exposure also extends to civil and military aerospace sectors, where manufacturers like Airbus and Boeing face large backlogs for more fuel-efficient aircraft amid rising defense spending across NATO member states.
The float was structured primarily to facilitate the exit of Robin Womersley, a private equity adviser and former principal shareholder, who is estimated to have realised approximately £23 million from the sale. The listing, advised by Panmure Liberum, did not aim to raise new capital but was noted for attracting substantial investor demand during what has been a slow year for new AIM listings.
The successful debut of TEK4’s shares offers a positive sign for the AIM market, which has faced questions about its future following a decline in new issuances.