Dubai-based hookah company AIR, the owner of the globally recognized Al Fakher brand, announced it will go public in the United States through a merger with SPAC Cantor Equity Partners III (CAEP.O). The deal values the combined company at approximately $1.75 billion and positions AIR to capitalize on growing global demand for flavored hookah products.

SPAC Merger: A Strategic Route to the Public Markets

Special Purpose Acquisition Companies (SPACs) have regained popularity as an alternative to traditional IPOs, offering a faster and often less costly route to public markets. Through this arrangement, AIR bypasses the conventional IPO process, merging with the publicly traded SPAC to become AIR Global Limited, which will trade on Nasdaq under the ticker symbol “AIIR” once the deal closes. The companies anticipate the transaction will finalize in the first half of 2026.

AIR’s Financial Performance and Global Presence

AIR reported $375 million in revenue and $150 million in adjusted EBITDA for 2024, reflecting strong growth in its core hookah business. The company operates eight production facilities across the United Arab Emirates, the European Union, and via third-party partners, supporting distribution in over 90 global markets.

Al Fakher, AIR’s most valuable brand, has built a loyal consumer base of 14 million worldwide as of 2024. Its flavored hookah products have become increasingly popular, particularly in U.S. urban centers where lounges and cafes catering to younger consumers have proliferated.

U.S. Market Growth and Regulatory Context

While hookah use is often positioned as a social or cultural activity, U.S. health authorities continue to caution that hookah smoke contains many of the same harmful chemicals as cigarettes. Despite this, consumer interest remains high, and the growing lounge and cafe culture has fueled market expansion.

Cantor Fitzgerald and SPAC Activity

The SPAC behind AIR’s public listing, Cantor Equity Partners III, is part of a surge in SPAC activity this year. According to SPAC Research, 116 SPACs have completed IPOs in 2025, up from 57 in 2024. Financial backers like Cantor Fitzgerald have provided capital to support such transactions, allowing companies like AIR to access U.S. capital markets efficiently.

Strategic Outlook for AIR

Going public will provide AIR with additional capital to expand operations, enhance distribution, and develop new product lines. With a strong presence in multiple regions and a loyal consumer base, the company is well-positioned to capitalize on the global hookah market, which continues to grow alongside lifestyle trends favoring social smoking experiences.