Air Water Ventures Ltd., an Abu Dhabi-based company whose technology condenses airborne moisture to produce drinking water, is going public through a merger with a US blank-check company.
(Bloomberg) — Air Water Ventures Ltd., an Abu Dhabi-based company whose technology condenses airborne moisture to produce drinking water, is going public through a merger with a US blank-check company.
Combined with Athena Technology Acquisition Corp. II, Air Water will have an enterprise value of about $386 million, according to a statement reviewed by Bloomberg News. Athena currently holds about $261 million in cash in a trust and is expecting up to $60 million in financing through a private investment in public equity, or PIPE.
The merged business will be known as the Air Water Co. and is expected trade on the New York Stock Exchange.
Air Water, previously known as Eshara Water, says its technology produces quality drinking water at a lower cost than relying on bottled water and is also more environmentally friendly. The equipment can work anywhere there is power, without extensive pipework or other water infrastructure. It has sold 91 units across the Middle East, primarily to hotel groups and local governments.
Athena’s agreement comes at a time when the pace of mergers by special purpose acquisition companies, or SPACs, has slowed considerably from when many of the vehicles were formed in 2021.
“We have reached an inflection point,” said Isabelle Freidheim, chief executive officer of Athena Technology II. She said she believes that select companies can debut well on the stock market if they are a “category leader” and with a valuation to “reflect the current market environment.”
Freidheim was previously chair of Athena Technology Acquisition Corp., which agreed in 2021 to merge with a renewable energy company.
Air Water Chief Executive Officer Alex Guy said in an interview that being listed in the US will give the company the profile it needs to scale globally. He wants to use the new capital from the transaction for expansion beyond the company’s current markets of the United Arab Emirates, Saudi Arabia, Qatar and Malaysia.
“All the governments are aware that they need to look at new technologies,” Guy said. “Water scarcity is a major problem across the Middle East.”
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