Dubai-based Advanced Inhalation Rituals (AIR), one of the world’s biggest producers of shisha molasses, has invited banks to pitch for roles in its planned initial public offering (IPO) next year, two sources with knowledge of the matter told.
AIR is targeting a flotation in the first half of 2024, the people said on Tuesday, declining to be named as the matter is not public.
The company has not yet decided on a listing venue, but Abu Dhabi and Dubai are among the options being considered, they added.
AIR did not immediately respond to a request for comment.
Britain’s Kingsway Capital, the majority owner of AIR, is seeking a sale as part of a dual-track process, where a seller pursues a sale and an IPO at the same time.
Rothschild & Co (ROTH.PA) is acting as financial advisor to assess options for AIR, including a possible IPO, press reported in March.
The financial services group did not immediately respond to a request for comment on Tuesday.
Kingsway started meetings last month with big tobacco firms including British American Tobacco and Japan Tobacco.
An investment in AIR would provide global tobacco makers access to the shisha and the vaping equivalent e-shisha market in the Middle East and beyond, the sources said.
Kingsway in 2020 took private Jordan-domiciled and Amman Stock Exchange-listed Al Eqbal Investment Co in a transaction valued at more than $1.4 billion including debt. The company was then rebranded as AIR.
Private equity firms generally seek to exit their investments between five and seven years after buying in.
AIR’s most valuable business is Al Fakher, which manufactures flavoured molasses for shisha pipes sold in more than 100 countries, according to its website. It also produces OOKA, a pod-based device that simulates the experience of smoking shisha, also known as hookah, without the charcoal.
Middle Eastern companies bucked global trends last year to raise about $22 billion through IPOs, according to Dealogic. That was more than half the total for the wider Europe, Middle East and Africa region.