The British company Raspberry Pi, renowned for its compact computers popular with hobbyists and novice programmers, plans to pursue a listing on the UK stock market, providing a notable lift to the City.
Raspberry Pi has officially filed a preliminary notice of its intent to go public and is targeting a valuation of approximately £500 million in the imminent future.
This announcement followed news from the Cambridge-based company on Wednesday that its revenue increased by 42% last year, reaching $265.8 million (£211 million).
The company intends to issue new shares to generate capital, while its principal shareholder, the Raspberry Pi Foundation, will also divest a portion of its holdings during the offering.
This listing is poised to be among the most significant tech IPOs in the UK in recent times, especially as numerous tech firms have been departing from the London Stock Exchange.
Eben Upton, co-founder and CEO of Raspberry Pi, mentioned that while the company considered a New York listing, it ultimately decided on London.
On Wednesday, Raspberry Pi announced its plans to go public, revealing that it would submit its listing documents later that day.
The company reported that its pre-tax profits nearly doubled last year, jumping from $20 million to $38.2 million, and it anticipates a 10% to 12% increase in computer unit sales over the medium term.
However, Raspberry Pi cautioned that profits might decline in the next two years due to the launch expenses of its forthcoming Raspberry Pi 5 model and rising costs of components.
Since its inception in 2008 and the launch of its first product in 2012, Raspberry Pi has sold over 60 million devices.
Prices of its computers range from as low as £3.90 to about £60. These devices are popular among enthusiasts for projects like creating smart home hubs, DIY computer servers, or retro gaming consoles.
Raspberry Pi also indicated a strategic shift toward producing higher-priced, more powerful devices to cater to corporate clients. This move has sparked concerns among fans that the company might drift away from its core hobbyist community.
Notable external investors in Raspberry Pi include Arm and Sony. The foundation that holds the majority stake in the company aims to promote coding skills among schoolchildren.
Mr. Upton commented on the IPO, stating, “For the Raspberry Pi Foundation, which has been a patient and supportive shareholder, this IPO presents an opportunity to further enhance their exceptional efforts in empowering young people through computing.”
“Raspberry Pi enthusiasts can expect the upcoming stage of our evolution to open up unparalleled opportunities for creativity and innovation.
“As the world becomes increasingly interconnected, demand for Raspberry Pi’s high-performance, affordable computing solutions is growing. We possess the technological blueprint to significantly enhance our impact, and we are eager to begin the next chapter of our growth.”
Jefferies and Peel Hunt are managing the flotation process.
