Raspberry Pi, a leading British producer of low-cost computing devices, enjoyed a stellar start on the London Stock Exchange, with its shares surging on their first day of trading. Known for its pioneering and accessible mini PCs, the company’s stock quickly rose above its initial public offering price, signaling robust investor enthusiasm.
The company’s rise from a niche educational device maker to a publicly listed entity underscores its significant impact on the affordable computing market. The strong opening performance not only validates Raspberry Pi’s market strategy but also sets a solid foundation for its future growth and innovation.
Shares of British PC maker Raspberry Pi surged on its first day as a public company, delivering a welcome lift to London’s beleaguered market for new stock listings.
By 10:35 a.m. in London, Raspberry Pi shares were trading at 360 pence each, significantly higher than its initial public offering price of 280 pence. The stock climbed as much as 40% from its £166 million ($211 million) IPO price before slightly retreating.
This modest yet promising debut shines a light on the London market, which has struggled to attract tech companies in recent years. Raspberry Pi is the first tech firm to raise $100 million or more in a London IPO since Devolver Digital Inc. went public in 2021, according to Bloomberg data.
Adam Montanaro, a fund manager at Montanaro Asset Management who invested in the IPO, remarked that Raspberry Pi provided “a much-needed quality injection into the UK capital markets. Hopefully, this will act as a catalyst for future listings of innovative British businesses.”
Raspberry Pi, known for its affordable computers favored by hobbyists and educators, achieved a market capitalization of around £542 million. Its IPO was significantly oversubscribed, with pricing at the upper end of the marketed range, indicating strong demand.
This listing marks the largest IPO in London since Cab Payments Holdings Plc went public in July 2023. London has lagged behind in this year’s IPO recovery, with only about 2% of the $13 billion raised in European IPOs.
The London Stock Exchange faced setbacks last year when British chip designer Arm Holdings Plc opted to list in New York. The loss of tech listings has accelerated, with Darktrace Plc agreeing to be acquired by private equity firm Thoma Bravo.
While Raspberry Pi’s IPO may boost confidence in the UK tech sector, its relatively small size and limited free float temper broader excitement. Ben Barringer, an analyst at Quilter Cheviot, noted that “there is a long way to go before the UK can be seen as recovering, but this IPO may encourage other tech founders to consider this market route.”
Initially, Raspberry Pi considered going public in early 2022. Since then, it has secured investments from British chipmaker Arm and Sony Group Corp.’s semiconductor division.
With its stock gaining momentum on debut, Raspberry Pi’s market entry has captured the attention of investors, highlighting confidence in its continued relevance and expansion potential in the tech industry.
