BGC PARTNERS - ASELSAN 1Q18 BETTER
Comment: Overall, we think that the reaction on Aselsan’s 1Q18 results may be slightly positive due to higher than expected bottom line and robust operational performance. Aselsan trades at 12M trailing P/E of 18.0x and EV/EBITDA of 23.6x as of 1Q18-end; we maintain our HOLD rating with 7% upside potential. Main short term event is the upcoming SPO; the company will increase its paid-in capital from TL1.0bn to TL1.21bn, by 21%, via a restricted rights issue. The BoD will decide on the possible discount/premium for the new shares, and will apply to the CMB preparing an offering circular. 210mn shares would be worth TL5.3bn (US$1.3bn) using Aselsan’s last closing of TL25.08/share. Recall that on 27 February, Aselsan hired six local brokers for the SPO. According to the former comments, Aselsan aims to complete the process until mid-2018. Overall, additional shares may create overhang and may hurt the share performance in the short term.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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