Raspberry Pi, a British computing startup known for its tiny single-board computers, recently made its market debut with an initial public offering that saw shares rise 39% on Tuesday. The company aims to raise £166 million from the IPO, with shares priced at 280 pence apiece. The listing is seen as a rare success for the London Stock Exchange, which has struggled to attract technology listings in recent years.
The offering consists of 45.9 million ordinary shares sold by Raspberry Pi’s majority shareholder, Raspberry Pi Mid Co Limited, along with 2.13 million shares sold by other shareholders and 11.23 million freshly issued shares. An overallotment option could potentially add another 4.6 million shares if there is sufficient demand, bringing the total offer size to £178.9 million. This valuation of around £541.6 million reflects the company’s growth and potential in the tech industry.
Raspberry Pi was established in 2012 by CEO Eben Upton to make computing more accessible, particularly for young people. While it initially catered to hobbyists, the company has shifted its focus to the industrial market, with 72% of unit sales targeting this sector. Its single board computers are used in a variety of applications, including powering factory operations. In 2023, the company reported revenues of $265.8 million, representing a 41% year-on-year increase from 2022.
Key industry players such as Arm and Sony have shown their support for Raspberry Pi, with Sony Semiconductor Solutions investing in the startup last year. While the company’s size may be modest compared to other tech giants, its successful IPO could inject some much-needed vitality into the London Stock Exchange. This comes at a time when many tech firms, including Arm, have opted to list in the U.S rather than in the U.K or Europe.
Overall, Raspberry Pi’s market debut marks a significant milestone for the company and the London Stock Exchange, showcasing the potential for growth and innovation in the tech sector. With a strong focus on accessibility and versatility, Raspberry Pi has carved out a niche market for itself and attracted the support of prominent industry players. As the company continues to expand its reach and offerings, it is poised for further success in the ever-evolving world of technology and computing.
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