British computing startup Raspberry Pi has achieved a significant milestone by raising £166 million ($211.2 million) from its initial public offering. This success is considered a rare win for London’s main stock exchange, which has faced challenges in attracting technology listings in the past.
Raspberry Pi, known for manufacturing tiny single-board computers, priced its shares at 280 pence each. As a result, the company is now valued at around £541.6 million. Although this valuation may seem small compared to other tech companies, the IPO has the potential to inject new life into the struggling London bourse.
Raspberry Pi has garnered support from several high-profile industry players, including Arm and Sony. Sony Semiconductor Solutions, a subsidiary of Sony Corporation, made an undisclosed investment in the British startup last year. Additionally, Arm chose to list in the U.S rather than in London, highlighting the significance of Raspberry Pi’s decision to go public in the UK.
The IPO offering consists of 45.9 million ordinary shares from Raspberry Pi’s existing majority shareholder, Raspberry Pi Mid Co Limited, a subsidiary of the Raspberry Pi Foundation. The offering also includes 2.13 million ordinary shares from other shareholders, along with 11.23 million freshly issued shares. An overallotment option may allow the Raspberry Pi Foundation to issue an additional 4.6 million shares if there is sufficient demand.
Founded in 2012 by CEO Eben Upton, Raspberry Pi aims to make computing more accessible, particularly to young people. The company’s single-board computers have a wide range of applications and have gained popularity not only among hobbyists but also in the industrial market. In fact, 72% of Raspberry Pi’s unit sales are targeted towards the industrial sector, where the technology is utilized in various settings, including factories.
In 2023, Raspberry Pi reported revenues of $265.8 million, marking a significant 41% increase from the previous year. This growth trajectory underscores the company’s potential and the market’s increasing demand for its innovative computing solutions.
Raspberry Pi’s successful IPO and subsequent valuation have positioned the company as a key player in the technology sector. By choosing to go public in London, the company has not only demonstrated confidence in the UK market but has also opened new opportunities for growth and expansion.