A California-based maker of plastics packaging is planning an initial public offering.
Karat Packaging Inc. of Chino, Calif., has filed initial paperwork with the U.S. Securities and Exchange Commission to offer the shares at a future date.
Karat, incorporated in September 2018, is the holding company for Lollicup USA Inc. and makes cups, lids, tableware, cutlery, straws and food packaging. Karat has been a long-time brand for Lollicup products.
The initial SEC filing does not include a proposed share price or indicate how many shares the company plans to sell.
Along with plastic, the company also makes paper products. Offerings include biopolymer and compostable offerings, the company said.
"In addition to manufacturing and distribution, we offer customized solutions to our customers, including new product development, design, printing and logistics services," the IPO states.
Company customers include restaurant chains including Applebee's Grill + Bar, Chili's Grill & Bar, Chipotle Mexican Grill, Corner Bakery Cafe, In-N-Out Burger and Panda Express, the filing states.
"We also supply products to smaller chains and businesses, including boutique coffeehouses, bubble tea cafes, pizza parlors and frozen yogurt shops. As our manufacturing capabilities and footprint expand, we are also beginning to supply products to national and regional supermarkets as well as convenience stores," the filing states.
Karat traces its roots to bubble tea cafes and once operated a network of such locations. The company has since sold off most of those locations, but still provides packaging products to those sites. Bubble tea, also known as boba, features tapioca balls in the drink.
Along with the company's original 300,000-square-foot manufacturing location in Chino, Karat has a 500,000-square-foot plant that opened in the second quarter of this year in Rockwall, Texas. That site is expected to be fully operational early next year.
Karat also expects to open a 190,000-square-foot distribution location in Branchburg, N.J., next year. That facility will join existing distribution locations in Avenel, N.J., Sumner, Wash., and Summerville, S.C.