Raspberry Pi has announced its intention to float on the London Stock Exchange and it is thought it could be valued at up to £500million.
The Cambridge company, which produces hugely popular low-cost computers, said the IPO would help it continue expansion and aid the Raspberry Pi Foundation - its charitable arm - to “double down on their outstanding work to enable young people to realise their potential through the power of computing”.
Raspberry Pi has sold more than 60 million computers since launching its first credit-card sized board in 2012 and has exposed millions of young people to coding, with dozens of Code Clubs now in operation.
The company has also developed a massive following among hobbyists and enthusiasts, who use its products to power all kinds of innovations, from smart home hubs to mini Mars rovers, while companies have also adopted them to run functions from security to ventilation.
In a statement issued today, Raspberry Pi said it was “considering applying for admission of its ordinary shares to the premium listing segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange”
It put its current total addressable market at $21.2billion and said there was “a substantial opportunity for it to capitalise on and sustain its strong growth trajectory”, having sold 7.4 million units in 2023 alone.
“Raspberry Pi’s products are sold in three principal markets: the Industrial and Embedded market, which in 2023 accounted for 72 per cent of unit sales; the Enthusiast and Education market, which in 2023 accounted for 28 per cent of unit sales; and the semiconductor market, which Raspberry Pi entered in early 2021 with the launch of its first semiconductor product, the RP2040 microcontroller,” the company said.
The company recorded revenue of $265.8million in 2023, with gross profit of $66m, and operating profit of $37.5m, as well as adjusted earnings (EBITDA) of $43.5m.
The Sunday Times has projected the company could be valued at £500m.
Raspberry Pi is a subsidiary of the Raspberry Pi Foundation, founded in 2008 “with the goal of promoting interest in computer science among young people”.
The company has distributed about $50m in dividends to the foundation since 2013 “to advance its educational mission globally”. The foundation will remain a major shareholder after flotation.
There have been multiple versions of Raspberry Pi’s single board computers - including some costing as little as £9.60. Its most advanced board, the Raspberry Pi 5, was released last year and features a 4-bit quad-core Arm Cortex-A76 processor running at 2.4GHz, priced at £76.80 for the board alone.
The announcement comes shortly after Raspberry Pi moved into new Cambridge Science Park offices.
Eben Upton, CEO and co-founder of Raspberry Pi, said: “When we released our first product in 2012, our goal was to provide a computer that was affordable enough for young people to own and explore with confidence, giving them the chance to discover computing and get excited about it. But from the very beginning we saw customers using our products in a staggering variety of applications across a broad swathe of markets, and as we recognised the potential for affordable technology to make a meaningful difference not just in education but in countless other contexts, the scale of our ambition grew.
“Twelve years later, we have sold over 60 million units in over 70 countries around the world. 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. 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 per cent of units sold.
“Raspberry Pi’s unique culture is driven by an exceptional team, dedicated to doing excellent work that pushes the boundaries of computing innovation. We build the products we want to use ourselves, and we’re not easily satisfied.
“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. We’ve hugely appreciated their support on our journey so far and are delighted that the foundation will remain a major shareholder. “Raspberry Pi enthusiasts will see the next phase of our development offer unprecedented opportunities for creativity and innovation. Our commitment to low-cost computing, a fundamental part of what is special about Raspberry Pi, is unchanged.
“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.”
