IPO back in the works for Lollicup parent Karat Packaging
A plastics packaging maker is planning an initial public stock offering a year after it withdrew a similar plan.
Chino, Calif.-based Karat Packaging Inc. announced terms for its IPO on April 7. The company, the parent of foodservice packaging company Lollicup, plans to raise $75 million by offering 4 million shares at a price range of $18 to $20. At the midpoint of the proposed range, Karat Packaging would command a fully diluted market value of $368 million.
Karat is a specialty distributor and select manufacturer of plastic, paper, biopolymer-based and other compostable foodservice products, including food and takeout containers, bags, tableware, cups, lids, cutlery and straws. Its customer base includes Applebee's, Chili's, Chipotle Mexican Grill, Corner Bakery Cafe and TGI Fridays.
Karat was founded in 2000 and reported $296 million in 2020 sales. It plans to list on Nasdaq under the symbol KRT.
Karat had filed paperwork to go public with the U.S. Securities and Exchange Commission in September 2019, but withdrew the documents a month later.