On June 3, 2024, the UK-based personal computer manufacturer, Raspberry Pi, officially announced its plans to pursue an initial public offering (IPO) on the London Stock Exchange. This move, slated for later this month, signifies a noteworthy moment for London’s financial market, which has recently seen a decline in major listings.
Raspberry Pi’s IPO is a much-needed boost for the UK market, which has seen its share of European IPOs fall to just 2% this year.
Bloomberg Financial Analysis Raspberry Pi’s IPO will include new shares intended to raise $40 million, along with existing shares sold by current stakeholders. Controlled by a charitable foundation, Raspberry Pi aims to strengthen its position by listing on London’s main market.
The confirmation of this IPO provides a much-needed uplift to the UK market, which has experienced a significant reduction in its share of IPOs within Europe. This year’s European IPOs have raised a total of $12.3 billion, with the UK’s contribution plummeting to approximately 2%, the lowest in decades.
Raspberry Pi, a prominent name in the affordable computer market, targets a valuation of around £500 million ($637 million). The IPO is expected to be the largest in London since Kazakhstan’s Air Astana JSC’s listing earlier this year.
Existing stakeholders, including Arm Holdings Plc’s investment arm and Lansdowne Partners UK LLP, have committed substantial investments as cornerstone partners. Arm Holdings plans to acquire $35 million in shares, while Lansdowne Partners will purchase up to $20 million.
The listing of Raspberry Pi on the London Stock Exchange marks a significant step for a market that has struggled to keep pace with global competitors.
Thyagu Adinarayan, Financial Journalist Raspberry Pi has previously secured funding from Arm and Sony Group Corp.’s semiconductor division. Despite Arm’s own choice to list in New York, Raspberry Pi’s decision to stay in London is a significant boost for the local market.
In the last fiscal year, Raspberry Pi reported revenues of $265.8 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $43.5 million. The company intends to utilize the funds from the new shares to enhance its engineering capabilities, strengthen supply chain resilience, and support general corporate purposes.
