Karat Packaging, which produces single-use food packaging, announced terms for its IPO on Wednesday.
The Chino, CA-based company 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 environmentally-friendly disposable foodservice products and related items. Its products are available in plastic, paper, biopolymer-based, and other compostable forms, and include food and take out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products. Its customer base includes Applebee's, Chili's, Chipotle Mexican Grill, Corner Bakery Cafe, and TGI Fridays, among others.
Karat Packaging was founded in 2000 and booked $296 million in sales for the 12 months ended December 31, 2020. It plans to list on the Nasdaq under the symbol KRT. Stifel, William Blair and Truist Securities are the joint bookrunners on the deal.
