Computer maker Raspberry Pi has confirmed its intentions for an IPO in London in a much-needed boost to the capital’s ailing stock exchange.
The Cambridge-based business, which makes small single-board computers, said it hopes to use funds raised to invest in its sales arm to take products into more markets as well as build its design consultancy business. The firm said it had a current total addressable market of around £17 billion, “reflecting a substantial opportunity for it to capitalise on and sustain its strong growth trajectory.”
Raspberry Pi is thought to be seeking a valuation of £500 million in a float.
The firm reported revenues were $266 million (£211 million) in 2023, with gross profits of $66 million and operating profit of $38 million.
CEO Eben Upton said: “A remarkable ecosystem of individuals and businesses has grown around Raspberry Pi, supporting both the enthusiast and industrial markets to innovate and succeed with our products.
“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.”
The move has raised hopes for a recovery in the London stock market after an exodus of businesses seeking higher valuations elsewhere and a dearth in listings.
The London Stock Exchange has fallen out of the top 20 global IPO destinations of 2024, having raised only as much money as Kazakhstan’s stock market.
Data compiled by Mergermarket for the Standard shows the LSE’s main market languishing in joint-20th position for money raised by new floats in the first four months of the year. It has only completed one float, raising just $119 million (£95 million).
Several London-based business including tourism business The London Tunnels and fintechs Zilch and Zopa have mooted plans for IPOs but have so far not laid out a timeline amid challenging market conditions. E-commerce giant Shein has also discussed plans for a London IPO, but New York remains its preferred listing destination.
AJ Bell investment director Russ Mould said: The addition of an established, profitable technology company is exactly what the UK market needs to hopefully open the flood gates for more tech firms to list in London.
“While Raspberry Pi is only a tiny player when pitched against the mega-cap tech names in the US, there are still plenty of characteristics which might pique someone’s interest. It has a large community of users [and] it makes money rather than simply being a bright idea that is not yet commercialised.”
Raspberry Pi was initially founded as a charity in 2012 aimed at promoting computer science in schools, before setting up a commercial subsidiary to cater to growing demand. Raspberry Pi is now the best-selling UK-made computer of all time, having topped the ZX Spectrum in unit sales in 2015.
The small computers are now used in a range of products from game consoles to washing machines to underwater exploration vehicles, while the firm said it had built “close working relationships” with major global technology partners, including shareholders Sony and Arm.
Jefferies and Peel Hunt have been engaged as joint sponsors and bookrunners for the flotation, with the shares set to be available to retail investors via the Peel Hunt trading portal.
The charitable arm will remain a shareholder in the listed business, Raspberry Pi said.