Raspberry Pi set for June IPO in welcome boost for London market

UK budget computer firm Raspberry Pi has confirmed aims to list in London next month in a boost to the capital’s flagging stock market.

The Cambridge-based firm – known for affordable credit card-sized computers designed to boost coding skills among children – has revealed plans to raise 40 million US dollars (£31.4 million) in new money as part of the initial public offering (IPO) on London’s main market.

The IPO is a welcome victory for the London market, which has been hit by a swathe of UK-listed firms being bought out or defecting abroad.

Paddy Power owner Flutter has moved its main stock market listing to New York, while German-owned Tui approved a plan to delist from London in February, and in another blow UK chip maker Arm Holdings chose Wall Street over London for its stock market return.

Arm and fellow Raspberry Pi investor Lansdowne Partners have agreed to also buy 35 million US dollars (£27.5 million) and 20 million US dollars (£15.7 million) worth of shares respectively as part of the IPO plans.

Raspberry Pi said it would use cash from the equity raise for engineering projects, improving its supply chain, and other general corporate purposes.

It is thought the IPO could value Raspberry Pi at a reported £500 million.

Martin Hellawell, chairman of Raspberry Pi, said: “We are delighted to confirm our intention to float on the London Stock Exchange, underscoring our confidence in the UK as the home for innovative and growing global businesses.”

“We greatly appreciate the long-term support of our cornerstone investors, Arm and Lansdowne, and look forward to widening our shareholder base as we take the next steps in our journey,” he added.

Raspberry Pi was founded by computer scientist Eben Upton in 2008, before releasing its first product in 2012.

It has since sold more than 60 million of its single board computers alone.

The group’s products are sold across more than 70 countries worldwide.

It is a subsidiary of the Raspberry Pi Foundation – a UK charity founded when the company was set up in 2008, with the goal of promoting interest in computer science among young people.

As a major shareholder in Raspberry Pi, the foundation has received around 50 million US dollars (£39.7 million) in dividends since 2013, which has been used to advance its educational mission globally, according to the group.

Paul Williamson, a senior vice president at Arm, said: “With a shared vision to lower barriers to innovation and make computing accessible for everyone, Arm and Raspberry Pi are natural collaborators.

“Following our strategic investment in the business last year, we look forward to increasing our stake as Raspberry Pi steps into this new exciting chapter.”

Raspberry Pi reported revenues of 265.8 million US dollars (£211.1 million) in 2023, with operating profits of 37.5 million US dollars (£29.8 million).