Raspberry Pi, the renowned maker of affordable single-board computers, has emerged as an unexpected player in the stock market. The company recently priced its initial public offering (IPO) at £2.80 per share, valuing the company at an impressive £542 million or $690 million. The IPO has already proven to be a success, with shares jumping to £3.70 shortly after pricing—a 32% increase that could potentially result in Raspberry Pi raising over $200 million.
However, it’s worth noting that retail investors are currently unable to purchase Raspberry Pi shares. Trading is currently limited to institutional shareholders, with retail investors gaining access to buy and sell shares starting this Friday. Despite this limitation, Raspberry Pi’s decision to go public is a significant win for the London stock market. While many British tech companies opt to list on U.S. stock exchanges like NASDAQ or the New York Stock Exchange due to their liquidity, Raspberry Pi’s decision to list in London highlights the growing strength and appeal of the city’s stock market.
Raspberry Pi initially gained popularity for its small yet powerful computers that could be programmed for various tasks without breaking the bank or requiring excessive power. These Arm-based computers have become a favorite among tech enthusiasts and hobbyists looking to create media servers, retro game consoles, interactive dashboards, and robotics projects. More recently, industrial companies have also embraced Raspberry Pi, incorporating the computers into their devices and facilities. In fact, the industrial and embedded segment now accounts for a substantial 72% of Raspberry Pi’s sales.
Since its inception, Raspberry Pi has sold an impressive 60 million units. In 2023 alone, the company generated $266 million in revenue and $66 million in gross profit. As a public company, Raspberry Pi Ltd operates as the commercial subsidiary of the Raspberry Pi Foundation—the organization behind the mission to make coding more accessible through affordable programmable computers. The foundation remains the main shareholder of Raspberry Pi Ltd, ensuring its commitment to its core objectives.
Notably, Raspberry Pi has attracted strategic shareholders in addition to institutional investors. Companies like Arm and Sony Semiconductor Solutions Corporation, a subsidiary of Sony specializing in smartphone image sensors and other components, hold stakes in Raspberry Pi. Arm has even expressed its intention to increase its stake in Raspberry Pi following the company’s public listing.
In conclusion, Raspberry Pi’s unexpected journey from a creator of inexpensive computers to a publicly traded company is a testament to its success and growing influence. The company’s IPO has garnered significant attention and could potentially raise substantial capital. Moreover, Raspberry Pi’s decision to list on the London stock market bolsters the city’s tech industry reputation. With its versatile offerings and expanding presence in various sectors, Raspberry Pi is positioned to continue driving innovation and accessibility in the realm of computing and programming.
