Dubai’s AIR, the owner of hookah brand Al Fakher, said on Friday it had agreed to go public in the US through a merger with blank-check firm Cantor Equity Partners III, in a deal valuing the combined company (SPAC) at $1.75 billion.

The deal with the Cantor Fitzgerald-backed special purpose acquisition company comes as this unconventional route to the public markets has regained popularity in the US after years of subdued activity, following poor share performance and regulatory roadblocks.

“One of the reasons for the uptick in new SPACs has been an improved macroeconomic environment, particularly the decline in interest rates, which has made it easier for companies to access capital through faster routes like SPACs,” said IPOX research associate Lukas Muehlbauer.

“The broadly positive post-merger aftermarket this year is also showing that SPAC deals are shaking off the image of being overly risky.”