6K Additive’s ASX IPO Sets Stage for Sustainable Metal Powder Expansion

Overview of the Offer and Business Model

6K Additive, Inc. (ASX, 6KA) has filed a replacement prospectus for its initial public offering (IPO) on the Australian Securities Exchange, seeking to raise a minimum of A$48 million through the issuance of 48 million CHESS Depositary Interests (CDIs) priced at A$1.00 each. Each CDI represents a beneficial interest in one share of the company’s common stock. The offer is fully underwritten by Bell Potter Securities Limited and Morgans Corporate Limited.

The company is a US-based advanced materials manufacturer specialising in premium metal powders and alloy compacts for additive manufacturing (AM) and other high-performance industrial applications. Central to its operations is the proprietary UniMelt microwave plasma technology, licensed exclusively from majority stockholder 6K Inc. This technology enables 6K Additive to upcycle scrap metal; including machine turnings, out-of-spec powders, and end-of-life parts; into high-purity, spherical metal powders optimized for AM processes such as laser powder bed fusion and electron beam melting.

Growth Strategy and Expansion Plans

The IPO proceeds will fund a significant expansion of 6K Additive’s production capacity, including the installation of four additional UniMelt reactors at its Global Manufacturing Centre in Burgettstown, Pennsylvania. This expansion aims to increase spherical powder production capacity from 200 metric tonnes to approximately 1,000 metric tonnes annually, alongside consolidation of remote facilities into the Burgettstown headquarters to improve operational efficiency and margins.

Further phases of expansion include establishing dedicated refractory metals production facilities and new ingot melt capabilities, supported by a US$23.4 million Defense Production Act (DPA) Title III grant from the US Department of Defense. This grant, structured as a 50/50 cost-share, underscores the strategic importance of 6K Additive’s domestic supply of critical materials for aerospace, defense, and energy sectors.

Financial Position and Market Opportunity

6K Additive operates under US GAAP with a 31 December financial year end and has reported historical losses as it invests in scaling its technology and operations. The company’s pro forma financials show ongoing negative EBITDA, reflecting early-stage growth and capacity build-out. However, the management team expresses confidence in the company’s growth trajectory, supported by a diversified customer base exceeding 100 accounts across aerospace, defense, medical, energy, and industrial markets.

The global metal powders market is valued at over US$6.7 billion, with the additive manufacturing segment forecast to grow at a compound annual growth rate of approximately 19% through 2033. 6K Additive’s sustainable, scrap-based production model positions it well to capture market share in high-value metals such as titanium, nickel superalloys, and refractory metals, which are critical for advanced manufacturing applications.

Governance and Risks

Post-IPO, 6K Inc. will retain approximately 60% ownership, maintaining effective control over corporate decisions. The board comprises experienced executives and directors with deep expertise in advanced materials and industrial manufacturing. Key risks highlighted include reliance on licensed intellectual property, sourcing and operational scale-up challenges, regulatory compliance in highly regulated sectors, and differences between US and Australian corporate governance frameworks.

Investors should also consider the US securities law restrictions on resale of CDIs, including a 12-month distribution compliance period and the associated “FOR U.S.” designation on ASX trading screens, which restricts sales to US persons during this period.