Raspberry Pi goes public, sees 32% stock price surge
Raspberry Pi, the renowned manufacturer of affordable single-board computers, has officially become a publicly traded company. The company's initial public offering (IPO) was priced at £2.80 per share, valuing the company at £542 million or $690 million. Following the IPO, stock prices surged by 32% to £3.70, potentially raising over $200 million for the company. However, retail investors will have to wait until Friday to buy or sell shares.
London Stock Exchange benefits from Raspberry Pi's IPO
Raspberry Pi's decision to go public is not only a significant milestone for the company, but also a positive development for the London Stock Exchange. Despite other British tech firms often choosing to go public in the US due to market liquidity, Raspberry Pi's IPO has provided a boost to the London market. The company's successful listing could potentially encourage more UK tech firms, to consider the LSE for their IPOs.
Diverse applications and market dominance
Raspberry Pi is widely recognized for its compact computers that can be programmed for various tasks, at a low cost and power consumption. These ARM-based computers have gained popularity among tech enthusiasts for projects like media servers, interactive dashboards, retro game consoles, and robotics. The company has also seen increased adoption by industrial firms, with the industrial and embedded segment accounting for 72% of its sales.
Raspberry Pi's financial performance and ownership structure
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. The latter is a Sony subsidiary that produces image sensors for smartphones.
