Raspberry Pi Plans IPO on London Stock Exchange in 2024
Raspberry Pi Ltd Prepares for Public Debut on London Stock Exchange
Raspberry Pi Ltd, the UK-based computer manufacturer, is gearing up for an initial public offering (IPO) on the London Stock Exchange. The company’s CEO, Eben Upton, has announced that the IPO is likely to take place in the second half of 2024. This decision comes as Raspberry Pi learns from the challenges faced by Arm during its unsuccessful IPO and aims to capitalize on better market conditions.
Delays and Investments Shape Raspberry Pi’s IPO Journey
Raspberry Pi had initially planned to go public in 2021. However, due to global chip shortages and unfavorable listing conditions, the IPO was postponed. Despite these obstacles, the company managed to secure investments from prominent players such as Lansdowne Partners, Ezrah Charitable Trust, and Sony’s semiconductor division, which helped maintain its valuation at an impressive $500 million.
London’s Appeal and Raspberry Pi’s Readiness for the IPO
During a recent event for Raspberry Pi’s resellers in Cambridge, CEO Eben Upton expressed his confidence in the company’s preparedness for the IPO. He highlighted London’s appeal as a listing destination, citing its smart money approach. This sets Raspberry Pi apart from other UK firms like Arm, CRH, and Flutter that have opted for US listings.
Raspberry Pi’s Unique Governance Structure and Charitable Connection
Raspberry Pi Ltd is governed by the Raspberry Pi Foundation, an educational charity that may retain shares after the IPO and potentially benefit from future profits. This unique structure aligns the company’s mission with its investors’ philanthropic goals. To date, Raspberry Pi has sold approximately 55 million computers and reported revenues of $188 million, with an operating profit of $20 million.
Challenges Faced and Future Projections
Despite a global chip shortage impacting its operations last year, Raspberry Pi managed to sell five million units, falling short of its nine-million-unit target. However, CEO Eben Upton remains optimistic, projecting sales of seven million units this year. In 2021, the company raised $45 million at a $500 million valuation and secured an undisclosed sum this year at the same valuation.
A Significant Milestone for Raspberry Pi and the UK Tech Sector
Raspberry Pi’s plan to go public represents a significant milestone for the company and the UK tech sector. As the IPO timeline depends on market conditions, the anticipation surrounding Raspberry Pi’s future is growing. The company’s unique governance structure, charitable connection, and commitment to innovation position it as a key player in the computer manufacturing industry.