Raspberry Pi just made a big splash in the London market, with shares soaring by 39% on their first day. The British computing startup, known for its small, single-board computers, aims to raise around £166 million ($211.2 million) from this IPO.
A Strong Start: Conditional Trading Begins
On Tuesday, Raspberry Pi kicked off “conditional dealing,” with full trading set to start on Friday. The initial share price was set at 280 pence but quickly jumped to 390 pence. This surge marks a rare win for London’s leading stock exchange, which has been struggling to attract tech IPOs lately.
Valuation and Share Structure
With the initial pricing, Raspberry Pi’s market value stands at approximately £541.6 million. The offering includes 45.9 million shares from the main shareholder, Raspberry Pi Mid Co. Limited, plus 2.13 million shares from other shareholders and 11.23 million new shares. There’s also an over allotment option for another 4.6 million shares if demand is high, which could push the total offer to £178.9 million.
From Hobbyists to Industrial Powerhouse
Founded in 2012 by Eben Upton, Raspberry Pi aimed to make computing more accessible to young people. Initially popular among hobbyists, the company has seen its products increasingly used in industrial applications, accounting for 72% of their sales. Factories and other industrial environments have become significant markets for these versatile little computers.
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Impressive Financial Growth
Raspberry Pi reported revenues of $265.8 million in 2023, a 41% increase from the previous year. This growth has attracted significant backing from industry giants like Arm and Sony. Last year, Sony Semiconductor Solutions, a subsidiary of Sony Corporation, invested an undisclosed sum in the company.
A Boost for the London Stock Exchange
Though Raspberry Pi is relatively small compared to other tech firms, its successful IPO could invigorate the London Stock Exchange. The exchange has been losing out to different markets, especially the U.S., which attracted the IPO of another British tech firm, Arm, last year.
Conclusion
Raspberry Pi’s impressive debut highlights its growth potential and offers a glimmer of hope for the London market’s tech ambitions. Whether you’re an investor or just tech-curious, keep an eye on this innovative company as it continues to expand and evolve.
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