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Raspberry Pi seeks $211 million in rare London tech IPO.

ByYasmeeta Oon

Jun 11, 2024
Raspberry Pi seeks $211 million in rare London tech IPO.

Raspberry Pi seeks $211 million in rare London tech IPO.

On a day marked with significant financial activity, British computing startup Raspberry Pi is set to raise a substantial £166 million ($211.2 million) from its initial public offering (IPO). This event is particularly noteworthy as it represents a rare win for London’s main stock exchange, which has recently faced challenges in attracting technology listings.

The IPO of Raspberry Pi could introduce a breath of fresh air into the struggling London stock exchange, which has been overlooked by tech firms in favor of other European cities and, more predominantly, the U.S. For context, Softbank-owned chip designer Arm, despite being headquartered in the UK, opted for a U.S listing last year, reflecting a broader trend away from London.

Raspberry Pi, known for its affordable single-board computers, has set its share price at 280 pence each. At this price, the company’s valuation reaches approximately £541.6 million. While this may seem modest compared to other tech giants, the scale of Raspberry Pi’s IPO is significant for the London bourse.

A number of notable industry players back Raspberry Pi, signaling strong market confidence in its business model and prospects. These backers include:

  • Arm: A fellow UK-based technology firm
  • Sony: Through its subsidiary, Sony Semiconductor Solutions, which invested an undisclosed amount last year

Raspberry Pi IPO at a Glance

AspectDetail
IPO DateTuesday
Share Price280 pence
Company Valuation£541.6 million
Total Shares Offered59.26 million (including potential overallotment)
Major BackersArm, Sony
Target MarketIndustrial (72% of unit sales)

In 2023, Raspberry Pi reported revenues of $265.8 million, a significant increase of 41% compared to the previous year. This financial growth underscores the company’s expanding influence and successful penetration into the industrial market, which now accounts for 72% of its unit sales. Raspberry Pi’s products are increasingly used in various industrial applications, such as in manufacturing settings.

The offering includes several types of shares:

  • 45.9 million ordinary shares from Raspberry Pi Mid Co Limited, the company’s existing majority shareholder
  • 2.13 million ordinary shares from other shareholders
  • 11.23 million newly issued shares
  • A potential overallotment of 4.6 million shares, bringing the total possible offer size to £178.9 million

Conditional dealing for the shares will begin on Tuesday, allowing institutional investors to trade. Retail investors, however, must wait until Friday to participate.

Established in 2012 by CEO Eben Upton, Raspberry Pi was conceived with a mission to make computing accessible to younger generations. Over time, while the company has seen a shift towards industrial applications, its core mission remains to educate and facilitate innovation.

The technology developed by Raspberry Pi has transcended its initial hobbyist market, finding substantial applications in the industrial sector. Its cost-effective, versatile computers are employed in a variety of settings, demonstrating the broad potential of simple, accessible computing solutions.

Looking forward, Raspberry Pi’s IPO might not only catalyze its own growth but could also signify a turning point for the London Stock Exchange in re-attracting technology firms. The success of this IPO could encourage other tech companies to consider London as a viable option for their own listings, potentially reinvigorating the UK’s tech sector on the global stage.

As trading begins, the tech community and investors alike are keenly watching Raspberry Pi’s IPO. Its outcome could herald a new era for the London stock market, reinforcing its position as a desirable location for technology firms and startups seeking public investment.


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Featured Image courtesy of DALL-E by ChatGPT

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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