Raspberry Pi Goes Public with a 32% Surge in Share Prices on First Day

In a move that few could have predicted, Raspberry Pi, the manufacturer of small and inexpensive single-board computers, has taken a significant step by going public. On Tuesday morning, the company set its initial public offering (IPO) price on the London Stock Exchange at £2.80 per share, which values the company at £542 million or $690 million based on the current exchange rate.

Immediately following the IPO, Raspberry Pi's shares saw a substantial increase, jumping 32% to £3.70. This surge implies that Raspberry Pi could raise over $200 million during its IPO process, a noteworthy accomplishment for the company known for its affordable and versatile computing solutions.

At this stage, retail investors are not yet able to purchase Raspberry Pi shares; only certain institutional shareholders have the ability to trade the company's shares. Retail investors will gain the opportunity to buy and sell shares starting from Friday, expanding access to a broader audience.

The successful listing of Raspberry Pi also marks a significant win for the London Stock Exchange. While companies like Deliveroo and Wise are traded in London, many UK tech firms prefer to go public in the US, where stock markets offer greater liquidity. Raspberry Pi's decision to list in London highlights the potential for the city's stock market to attract more tech IPOs in the future.

Raspberry Pi is best known for its compact computers, which can be programmed to perform a wide array of tasks without requiring significant financial investment or power consumption. These ARM-based computers have gained popularity among tech enthusiasts for projects such as media servers, retro gaming consoles, interactive dashboards, robotics, and more.

Recently, there has been a notable increase in the adoption of Raspberry Pi by industrial companies, integrating the small computers into their devices and facilities. The company reports that its industrial and embedded segment now represents 72% of its sales, demonstrating the expanding use cases for its products beyond the hobbyist market.

Since its inception, Raspberry Pi has sold 60 million units. In 2023 alone, the company generated $266 million in revenue and achieved $66 million in gross profit, highlighting its significant market presence and financial performance.

Raspberry Pi Ltd, the publicly traded entity, is the commercial subsidiary of the Raspberry Pi Foundation. The foundation's mission is to make coding education more accessible through the provision of low-cost, programmable computers. It remains the primary shareholder of Raspberry Pi Ltd, ensuring that the foundation's educational objectives continue to be supported by the commercial success of the company.

Strategic shareholders in Raspberry Pi include notable names such as ARM and Sony Semiconductor Solutions Corporation, a subsidiary of Sony that produces image sensors for smartphones and other components. ARM has previously indicated its intention to increase its stake in Raspberry Pi through the public listing, underscoring its confidence in the company's future prospects.

The IPO of Raspberry Pi not only highlights the company's growth potential but also its wide-ranging appeal across different market segments. As the company begins trading on the London Stock Exchange, it is poised to attract considerable attention and investment, setting the stage for continued innovation and expansion in the tech industry.