Raspberry Pi announces plans to go public on London Stock Exchange
The news comes as a welcome relief for the LSE
British tech firm Raspberry Pi is aiming to end London's IPO dry spell with a potential listing this year.
The company, famous for its affordable computers beloved by hobbyists and educators, has announced its intention to file a registration document for a full listing on the London Stock Exchange (LSE).
While the fundraising target remains undisclosed, reports suggest Raspberry Pi seeks a valuation of roughly £500 million ($630 million).
The proposed offer will comprise a combination of newly issued shares and the sale of existing shares.
Jefferies and Peel Hunt are joint bookrunners for the offering.
Cambridge-based Raspberry Pi is the brainchild of Eben Upton, who now heads the company as CEO. He founded the Raspberry Pi Foundation, a non-profit established in 2008, with a mission to ignite a passion for computer science in young minds.
Raspberry Pi makes tiny computer boards, some priced as low as £15. When connected to a screen, these boards transform into fully functional computers.
In recent years, these tiny computers have transcended their educational roots, with many companies now using them to power various systems, including security cameras and ventilation controls.
Raspberry Pi shipped more than 60 million units worldwide since 2012. Last year, it sold 7.4 million units, of which 72% were bought by industrial customers.
The financial health of the company appears robust. For the fiscal year ending December 2023, the company reported an operating profit of $37.5 million on revenues of $265.8 million.
"For the Raspberry Pi Foundation, a patient and supportive shareholder, this IPO brings the opportunity to double down on their outstanding work to enable young people to realise their potential through the power of computing," Eben Upton said.
"In an ever more connected world, the market for Raspberry Pi's high-performance, low-cost computing platforms continues to expand. We have the technology roadmap to play an increasingly significant role, and we are excited to embark on the next stage of our growth."
Raspberry Pi Foundation will retain a significant stake even after the floatation, having already received $50 million in dividends from Raspberry Pi since 2013.
Raspberry Pi's listing ambitions aren't entirely new. In early 2022, discussions about a potential IPO swirled. Since then, the company has secured funding from British chipmaker Arm Holdings Plc and Sony's semiconductor division.
The news has come as a welcome relief for the LSE, which has witnessed a significant slowdown in IPO activity compared to the European market.
Major listings across the continent, including Swiss skincare giant Galderma Group AG, Spanish beauty conglomerate Puig Brands SA, and Dutch private equity firm CVC Capital Partners, have bypassed London.
Data compiled by Bloomberg paints a bleak picture - the LSE currently holds a meager 2% share of the $12 billion raised in European IPOs this year, marking its lowest participation in decades.
Earlier this month, Flutter, the parent company of Paddy Power, opted to switch its primary listing to New York. The decision followed similar moves by Anglo-German travel company Tui and the building materials firm CRH, highlighting a trend of companies shifting their listings away from the UK over the past year.