Raspberry Pi announces intention to list, major shareholder plans to offload shares

Raspberry Pi announced this morning it plans to list on the premium segment of the London Stock Exchange, a move that will be a major boost to London’s markets.

The company specialises in high-performance, low-cost single-board computers with IoT applications and uses in education and learning.

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“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,” said Eben Upton, CEO of Raspberry Pi.

“We’re now seeing the former feed into the latter, as the first generation who encountered Raspberry Pi as young people take their experience with our technology into their professional careers, and today the industrial and embedded market accounts for 72% of units sold.”

In the full year ended 31 December 2023, Raspberry Pi’s revenues were $265.8m, driving a gross profit of $66.0m and an operating profit of $37.5m.

Raspberry Pi is a fantastic business with abundant ESG credentials and strong financials. This is just the type of company London needs to get back on track.

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While the IPO is welcoming news for London’s markets, investors may be put off by the company’s motivations. As well as raising fresh funds by issuing new shares as part of the IPO, the Raspberry Pi Foundation, the company’s biggest shareholder, will offload some of its stake during the IPO process.

Initial public offerings with major shareholders selling from the get-go aren’t as preferable to those where major shareholders hold onto their stakes or are locked in for a period.

Ultimately, new investors in a company want to know existing shareholders see an IPO as the next step in their growth journey, not an opportunity to cash in.

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