By Chris Dorrell
Shares in chipmaker Raspberry Pi were trading over 30 per cent ahead of the company’s initial public offering (IPO) price approaching midday amid hot demand for London’s newest public company.
In an announcement this morning, Raspberry Pi confirmed that its shares had been priced at 280p – right at the top of end of its pricing range – giving the company a market capitalisation of around £541.6m.
Conditional dealings have begun today, during which institutional investors can trade the shares before full admission on Friday.
The company’s IPO was oversubscribed multiple times, and soon after the deal began, the chipmaker’s shares jumped to 360p.
“It may only fall into smaller company territory, but this IPO is big from a strategic perspective,” Dan Coatsworth, investment analyst at AJ Bell, commented.
“There is a widely held view that tech companies only float in the US where they can potentially get a higher valuation. Raspberry Pi is proof that the UK can still compete against the likes of the Nasdaq and attract home-grown champions,” he added.
Raspberry Pi’s IPO raised £166m (or £178.9m if the over-allotment option is exercised in full) on the London Stock Exchange in a boost for the capital’s struggling bourse.
According to Bloomberg data, it’s the largest tech floatation in London since video game maker Devolver Digital Inc. went public in 2021.
It’s the largest float since Cab Payments Holdings hit the market in July 2023.
The firm’s majority shareholder – the Raspberry Pi Foundation – offloaded 45.9m shares while a further 2.1m shares were sold by other shareholders. Another 11.2m shares were issued by Raspberry Pi, raising around £31.4m.
Chipmaker Arm committed to buying $35m (£28m) shares in the offering, while Lansdowne Partners committed to purchase $20m (£15.7m).
“The quality of the interactions during the marketing process has underlined our belief that London has the right calibre and sophistication of investor to support growing, ambitious technology businesses such as Raspberry Pi,” Eben Upton, chief executive of Raspberry Pi said in a statement ahead of the market open.
“The reaction that we have received is a reflection of the world-class team that we have assembled and the strength of the loyal community with whom we have grown,” Upton continued.
“Welcoming new shareholders alongside our existing ones brings with it a great responsibility, and one that we accept willingly, as we continue on our mission to make high-performance, low-cost computing accessible to everyone.”
The float will be a welcome boon to the market after a barren period in which new listings have fallen off a cliff. Just four firms floated in London in the first four months of the year, but the London Stock Exchange is now on the cusp of landing fast-fashion firm Shein as well as Raspberry Pi.
Politicians and regulators have been on a charm offensive ever since Cambridge-based tech firm Arm decided to list in New York. Major reforms to the listings regime are expected to take effect in the summer.
