Karat Packaging Inc. Reveals Details on Secondary Stock Offering

Author: Logan Wright Updated: 06-10-2025 10:30 PM

Karat Packaging Inc. Announces Secondary Offering of Stock

Karat Packaging Inc., a leading distributor and manufacturer of disposable foodservice products, has announced a secondary offering that promises to attract considerable attention. This offering will consist of 1,500,000 shares of its common stock, priced at $27.00 per share, and is set to be led by certain members of the company's management team, collectively referred to as the Selling Stockholders.

Details of the Offering

The underwriters have received a substantial 30-day option to purchase up to an additional 225,000 shares. This flexibility in share availability could play a crucial role in meeting market demand and maximizing investor interest.

Closing Provisions

The anticipated closing date for this offering is June 12, 2025, contingent upon meeting the standard closing conditions typical for such transactions. It's important to note that Karat will not receive any proceeds from the sale of these shares, as the offering involves stock held by the current shareholders.

Role of Underwriters

BofA Securities and William Blair & Company, L.L.C. have stepped in as the joint lead book-runners for the offering. Their expertise and market presence are expected to lend significant credibility to the offering, potentially enhancing its attractiveness to a broader range of investors.

Regulatory Framework

This secondary offering is being conducted in accordance with a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC). The registration statement, which outlines the terms under which securities may be sold, was declared effective earlier this year, ensuring compliance with federal regulations.

About Karat Packaging Inc.

As a premier distributor of various disposable foodservice products, Karat Packaging Inc. serves an array of clients, ranging from national chains to local eateries across the United States. Their product lineup includes food containers, cups, cutlery, and eco-friendly products developed from renewable resources. Notably, their Karat Earth line represents a commitment to sustainability without compromising quality.

Customized Solutions

In addition to their standard offerings, Karat Packaging prides itself on providing tailored solutions that meet the unique needs of its clients. These services encompass product development, design, and logistical support, making them a versatile partner in the foodservice industry.

Investor Relations Contact Information

For more information regarding this offering or general inquiries, interested parties can reach out to PondelWilkinson Inc. Contact Judy Lin or Roger Pondel at 310-279-5980. Additionally, inquiries can be directed to their email at IR@karatpackaging.com.

Frequently Asked Questions

What is the pricing for the common stock in the offering?

The common stock will be offered at a price of $27.00 per share.

Who are the underwriters for this offering?

BofA Securities and William Blair & Company, L.L.C. are the joint lead book-runners for the offering.

When is the offering expected to close?

The offering is anticipated to close on June 12, 2025, depending on customary closing conditions.

What is the purpose of this secondary offering?

This secondary offering will allow certain shareholders to sell their shares but will not provide any proceeds to Karat Packaging from these sales.

What products does Karat Packaging specialize in?

Karat Packaging specializes in disposable foodservice products, including containers, cups, cutlery, and eco-friendly items designed for restaurants and foodservice establishments.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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