In a move that that some may view as going against the current tide, British computer company Raspberry Pi has revealed that it would be listing on the UK stock market, as opposed to New York.
This move follows the hobbyist computer company seeing revenues surge by about 42% in 2023, touching approximately $265.8 million (€244.4 million), with an addressable market of about $21.2 billion.
Raspberry Pi, a subsidiary of the Raspberry Pi Foundation produces single-board computers, semiconductors, complementary accessories and compute models, amongst other things, for a variety of functions. These are suitable for home use, office use, coding enthusiasts and other tech hobbyists.
The company is expected to go for a valuation of approximately £500 million and trade on the London Stock Exchange, should its initial public offering (IPO) plans go ahead. It has also revealed that it was considering New York as a listing location as well, before eventually settling for the UK.
In order to raise more funds, the major stakeholder of the company, the Raspberry Pi Foundation will also divest a section of its stake, along with the sale of newly created shares in the IPO.
Eben Upton, the co-founder and chief executive officer (CEO) of the company said, as reported by The Telegraph, “For the Raspberry Pi Foundation, a patient and supportive shareholder, this IPO brings the opportunity to double down on their outstanding work to enable young people to realise their potential through the power of computing.
“Raspberry Pi enthusiasts will see the next phase of our development offer unprecedented opportunities for creativity and innovation.
“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.”
What could Raspberry Pi’s listing mean for the UK stock market?
Raspberry Pi’s listing could go a long way in reviving the UK stock market, which has suffered blow after blow in the past few months, due to a flurry of companies leaving for greener pastures in the US.
British semiconductor giant Arm Holdings has been one of the most prominent tech companies to reveal that it would be leaving the UK stock market to list in the US. Previously, Flutter, CRH and Smurfit Kappa have also moved across the Atlantic. This is mainly due to a reduction of investor confidence in UK stock exchanges, as well as excessive red tape and bureaucracy.
Not only does it make it harder for investors to invest in UK companies, but increasingly tightening laws and regulations, especially for oil and gas companies, also make it harder for energy giants such as Shell to operate.
On the other hand, the US offers a much broader investor and liquidity pool, as well as a much more welcoming environment for energy companies.
Russ Shaw, CBE, founder of Tech London Advocates, said, as reported by ITPro, “Raspberry Pi choosing London as its listing destination is a major vote of confidence in the LSE.
“To retain the capital’s crown as one of the world’s leading tech ecosystems, it is vital that our home-grown tech success stories choose to scale and grow here too.
“Raspberry Pi has rightly been a mainstay on the British tech scene for many years, encouraging children and young people to engage with the boundless potential of programming from the comfort of their own homes.”
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