Daily Brief United States: ZEEKR, Hesai Group, Klarna Group, Robinhood Markets , Legence, Gemini Space Station, Base Oil, Black Rock Coffee Bar, FT Intermediate, SmartRent and more

• On the 15th July, Geely Auto (175 HK), China’s second-largest carmaker, firmed a cash or scrip Offer for 62.8%-held ZEEKR (ZK US), a premium Chinese electric vehicle manufacturer
• ZEEKR has traded through the cash terms US$26.87/ADS from the onset; but at a discount to the scrip terms. The scrip spread has widened recently. 
• The Offer is low-balled. However, Geely’s stake plus Li Shufu (founder)’s 10.61% holdings push the Offer through. Geely’s EGM is this Friday (7th July). Li (41.34%) is required to abstain. 

• Hesai Group (HSAI US), a global leader in LiDAR solutions, is seeking to raise US$300 million through an H Share listing.
• On 9 February 2023, Hesai listed on the Nasdaq, raising US$190 million at US$19.00 per ADS.
• The investment case is based on a solid competitive positioning, high growth, emerging profitability, declining cash burn, and a reasonable valuation.

• Klarna will offer 34.3 million shares at $35-$37 and is scheduled to debut on Wednesday (9/10).
• Total revenue for the six months ended June 30, 2025 increased by $199 million, or 15% (17% on a like-for-like basis), compared to the six months ended June 30, 2024.
• A “buy-now, pay-later” competitor, Affirm Holdings (AFRM US), has been trading extremely well since April.

• Robinhood Markets (HOOD US) and Emcor Group Inc (EME US) are the main candidates for addition due to consistently high eligibility scores.
• Microstrategy Inc Cl A (MSTR US) or AppLovin (APP US) is forecasted to be the third addition, with sector balance acting as the limiting factor.
• CRH (CRH US) recently regained eligibility following positive August earnings and could be a surprise addition if the tech sector is excluded.

• Legence Corp set terms for its IPO and will offer 26 million shares at $25-$29 and is scheduled to debut on Friday, September 12th.
• The company is private-equity backed by BlackStone and PE-backed deals have struggled, broadly speaking, in 2025. 
• From 2021 to 2024, their revenues grew at a CAGR of approximately 39% and as of June 30, 2025, they had $2.8 billion of backlog and awarded contracts.

• Gemini will offer 16.67 million shares at $17-$19 and is scheduled to debut on Friday, September 12th.
• The underwriters have reserved up to 1,666,667 shares of Class A common stock, or 10% of the shares offered by this prospectus, for sale through a directed share program. 
• A $400 million growth equity round valued Gemini at $7.1 billion in November 2021. This funding round is significantly below that higher round. 

• Global base oils prices hold firm versus feedstock/competing fuel prices.
• Margins hold firm at time of year when fundamentals are typically weaker.
• Firm margins incentivize refiners to maintain high base oils output.

• Black Rock Coffee Bar (BRCB US) is set to offer 14.7 million shares at $16-$18 equating to a valuation of up to $861 million at the high-end of the range.
• Wellington Management has indicated an interest in purchasing up to $30.0 million in shares of Class A common stock in this offering.
• Store revenue has increased by the mid 20% in the 1H 2025 and the expansion plan is aggressive. At first glance, we like the risk-reward of this deal.

• Figure Solutions is offering 26.3 million shares at $18-$20 and will debut on Thursday, September 11th.
• Duquesne Family Office LLC has indicated an interest in purchasing up to an aggregate of $50 million of shares as an anchor order.
• Figure has grown quickly and profitably, with net income of $29 million and Adjusted EBITDA of $83 million, for the six months ended June 30, 2025.

Key points (machine generated)

• SmartRent, Inc. specializes in smart home automation for the rental housing industry and went public in August 2021 through a $2.2 billion merger.
• The company has expanded its product offerings and serves 15 of the top 20 multifamily property owners in the U.S.
• Despite growth, SmartRent’s stock has declined approximately 75% since a critical analysis published on January 30, 2024.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.