London, England – A British computing startup, Raspberry Pi, made waves as its shares surged 39% during its market debut, aiming to raise £166 million ($211.2 million) from its initial public offering. The company’s successful entrance into the market has brought a rare win for the London Stock Exchange, which has faced challenges attracting technology listings.
Initially valued at around £541.6 million based on its share pricing, Raspberry Pi saw significant interest as its shares began “conditional dealing,” with open trading set to commence on Friday. The company, known for its production of tiny single-board computers, priced its shares at 280 pence each, leading to an increase in share price to 390 pence.
The IPO, consisting of 45.9 million ordinary shares from Raspberry Pi’s majority shareholder, along with additional shares from other stakeholders and newly issued shares, represents a significant milestone for the company. Furthermore, an overallotment option could potentially see an additional 4.6 million shares issued, potentially increasing the final offer size to £178.9 million.
Raspberry Pi, founded by CEO Eben Upton in 2012, aims to democratize computing access for young people. While initially popular among hobbyists, the company has since expanded its reach to the industrial market, with 72% of its sales targeting industrial applications, such as in factory settings.
In 2023, Raspberry Pi reported revenues of $265.8 million, reflecting a 41% increase from the previous year. The company has garnered support from industry leaders like Arm and Sony, with Sony Semiconductor Solutions investing in the startup in the previous year. Despite its modest size compared to other tech giants, Raspberry Pi’s successful IPO could inject vitality into the London Stock Exchange, which has seen tech firms opting for listings in other regions, particularly the U.S.
The positive reception of Raspberry Pi’s IPO underscores the growing interest in technology companies entering the public market, providing a promising outlook for the future of the British computing startup. With its innovative products and expanding market reach, Raspberry Pi continues to captivate investors and tech enthusiasts alike, positioning itself as a key player in the evolving tech industry landscape.