Shares of Raspberry Pi surged 39% on its market debut on Tuesday as the British computing startup aimed to raise around £166 million from its initial public offering. The company began “conditional dealing” on Tuesday with full open trade set to start on Friday. The shares were priced at 280 pence each, and rose to 390 pence, valuing the company at approximately £541.6 million. The offering consists of over 45 million existing shares sold by the Raspberry Pi Foundation’s majority shareholder, along with newly issued shares and shares from other stakeholders. An overallotment option could potentially increase the offer size to £178.9 million.
Raspberry Pi was founded in 2012 by CEO Eben Upton with the goal of making computing more accessible, especially for young people. Their single-board computers have a wide range of applications and have gained popularity in both hobbyist and industrial sectors. Although initially popular with hobbyists, the company now states that 72% of its unit sales target the industrial market, where it is used in factories. In 2023, Raspberry Pi reported revenues of $265.8 million, showing a 41% increase from the previous year. The company has received investments from industry giants like Arm and Sony, with Sony Semiconductor Solutions investing in Raspberry Pi last year.
The Raspberry Pi IPO could potentially boost the London Stock Exchange, which has struggled to attract technology listings. Many tech firms have chosen to list in other parts of Europe or in the U.S. instead. For example, the U.K.-based chip designer Arm, which is owned by Softbank, opted to list in the U.S last year. Raspberry Pi’s successful IPO could help revive interest in the London bourse, as it showcases the potential for technology companies to thrive there. The backing from established industry players and the company’s strong financial performance could attract more investors to the London market.
The success of Raspberry Pi’s IPO demonstrates the growing demand for technology companies in the stock market, despite the challenges faced by London in attracting such listings. The company’s focus on making computing accessible and its wide range of applications have contributed to its popularity among both hobbyists and industrial users. The investment from companies like Arm and Sony further validates Raspberry Pi’s potential for growth and innovation in the technology sector. The strong performance of the IPO and the positive response from investors indicate a promising future for Raspberry Pi.
The initial public offering of Raspberry Pi has generated significant interest among investors, leading to a surge in share price and a strong debut on the market. The company’s focus on accessibility and innovation, along with its strong financial performance and backing from industry leaders, have contributed to its successful IPO. By targeting both hobbyists and industrial users, Raspberry Pi has positioned itself as a versatile player in the technology market. The IPO has the potential to revitalize the London Stock Exchange and attract more tech companies to list on the exchange, showcasing the strength and potential of the technology sector in the U.K.
