Raspberry Pi stock surges upto 40% on London Stock Exchange debut

The UK stock market can now breathe a sigh of relief, now that Raspberry Pi has finally gone public. The popular manufacturer of affordable single-board computers has made its debut as a publicly traded company on the London Stock Exchange (LSE). The IPO was priced at £2.80 per share, valuing the company at £542 million ($690 million). Shortly after its initial offering, Raspberry Pi’s shares surged by 32% to £3.70, potentially raising over $200 million for the company.

This initial valuation was met with enthusiastic investor response, with share prices experiencing a significant surge of 32% to £3.70 shortly after listing. The decision by Raspberry Pi to go public marks a significant moment for both the company and the London Stock Exchange. While many British tech firms have opted for listings in the US due to market liquidity in recent times, Raspberry Pi’s successful IPO provides a much-needed boost to the London market. This debut could encourage more UK tech firms to consider the LSE for their IPOs, revitalizing London’s tech IPO scene, especially since the exchange has witnessed a decline in tech IPO activity in recent years and the UK stock market painted a rather drab picture.

“Today, we’re proud to announce that Raspberry Pi has listed on the London Stock Exchange, as Raspberry Pi Holdings plc. This is a watershed moment for Raspberry Pi, and the start of a new phase in our evolution: access to the public market will enable us to build more of the products you love, faster. And the money raised by the Raspberry Pi Foundation in the IPO will support its ambitions for global impact in its second decade,” the firm noted in an official statement.

Speaking of the firm, it was founded 12 years ago with a goal to computing accessible and affordable, and quickly gained popularity for its credit-card sized computers. These low-cost, low-power ARM-based machines became a staple for hobbyists and educators alike, and are used for a wide range of projects, including media servers, retro game consoles, interactive dashboards, and robotics. Moreover, the company has seen increased adoption by industrial firms, with the industrial and embedded segment representing 72% of its sales.

Since its inception, Raspberry Pi has sold an impressive 60 million units. In 2023 alone, the company reported a revenue of $266 million and a gross profit of $66 million. Raspberry Pi Ltd, the publicly traded entity, is the commercial arm of the Raspberry Pi Foundation, which remains the primary shareholder. Other key shareholders include ARM and Sony Semiconductor Solutions Corporation, a subsidiary of Sony Corporation. Last year, its revenue clocked an annual growth of 41% to reach $265.8 million. Today, Raspberry Pi offers a wider range of models catering to different user needs. The top-of-the-line 8GB Raspberry Pi 5 costs around £80, making it a compelling option for more advanced projects. The Raspberry Pi 1 Model B+, launched in 2014, remains in production and is priced at around £35.