Raspberry Pi’s Stock Skyrockets as Investors Flock to Tiny Computer Maker

Investors are eagerly embracing the shares of Raspberry Pi, a British manufacturer of compact computers, following its debut on the London Stock Exchange on Tuesday.

Raspberry Pi’s stock surged by up to 40% in early trading, settling slightly lower at £3.85 ($4.90) by 11:54 a.m. ET, still boasting a remarkable 38% increase above its listing price. The initial public offering (IPO) valued the startup at nearly £542 million ($689 million).

Established in 2012 as a commercial offshoot of the Raspberry Pi Foundation, a charity promoting computer science education, the Cambridge-based company has gained renown for producing small yet fully functional computers integrated onto a single board, some priced as low as $35.

These diminutive boards, comparable in size to a credit card, can be linked to larger devices like desktop screens or employed as components to power various gadgets such as smart speakers and robots.

Raspberry Pi’s track record boasts sales exceeding 60 million computers globally, with over 70% of these devices acquired by industrial clients for applications ranging from advanced agricultural systems to automated beverage dispensers. The remainder is distributed to educational institutions and computer enthusiasts.

In a significant endorsement, the University of Cambridge hailed Raspberry Pi’s $35 computer as the “best-selling computer to come out of the UK” in 2022.

Boost for London’s Stock Market as Raspberry Pi’s IPO Takes Off
Raspberry Pi’s IPO, which raised £166 million ($211 million), ranks as Britain’s second-largest this year, according to Dealogic.

The infusion of capital from the IPO is earmarked for product development and the expansion of educational initiatives, signaling the company’s commitment to growth.

The success of Raspberry Pi’s market debut is a welcome development for London’s stock market, which has witnessed a string of departures in recent years as companies opt for listings in New York. Notably, British chipmaker Arm pursued a high-profile IPO on Nasdaq last year, bypassing London’s exchange.

Eben Upton, co-founder and CEO of Raspberry Pi, attributed the decision to list in London to the city’s robust investor base, emphasizing its ability to support burgeoning technology firms like Raspberry Pi.

While Raspberry Pi’s share offering may not be the largest, it underscores renewed enthusiasm for UK IPOs, particularly in the technology sector, which has been relatively sparse in recent times.