The highly anticipated IPO of British microcomputer maker Raspberry Pi has attracted significant interest from investors, with shares priced at 280p and a market valuation of £541.6mn. The listing is a positive development for London’s stock market, as high-growth technology firms often opt to list in New York. Shares surged 39 per cent during the initial “conditional dealing” phase, which was only open to certain institutional shareholders.
Chief executive Eben Upton expressed confidence in London’s investor base, noting that the marketing process reinforced the belief that the city has the sophistication to support ambitious technology businesses. The total offer size amounts to £166mn, with retail investors able to participate starting on Friday. If the overallotment option is fully exercised, the total offer size would increase to £178.9mn, representing about 33 per cent of the company’s shares.
Founded in 2008, the Raspberry Pi Foundation has been instrumental in promoting computer science education for young people. Prior to the IPO, the foundation held almost 73 per cent of shares in the company and has committed to remaining a shareholder. Other significant shareholders include Arm, Lansdowne Partners, Sony, and the Ezrah Charitable Trust, a US-based private foundation that supports the Raspberry Pi Foundation.
Raspberry Pi began trading in 2012 and has sold over 60mn single-board computers and computer modules. With expectations to sell 8.4mn units in 2024, the company reported revenues of $265.8mn in 2023, with pre-tax profits nearly doubling to $38.2mn. Arm, which listed in New York in September 2023, has committed to purchasing $35mn worth of shares in the IPO, building on its 3.4 per cent stake acquired last October.
Jefferies International and Peel Hunt were appointed as joint bookrunners for the Raspberry Pi IPO, further underlining the significance of this listing. The company’s success in attracting investor interest and its strong financial performance in recent years position it as a promising player in the technology sector. As the IPO continues to progress, all eyes will be on how Raspberry Pi navigates the public markets and capitalizes on its growth opportunities, further solidifying its position as a key player in the industry.
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