Raspberry Pi Listing and The Resurgence of The London Stock Exchange

BlytheRay explores the significance of Raspberry Pi’s London listing and its wider impact on UK capital markets

Raspberry Pi is a Cambridge-based technology company that sells cheap, credit-card sized single-board computers that hobbyists and amateurs can code themselves. Initially set up in 2008 as the Raspberry Pi Foundation, a charity with the idea of teaching basic computer science skills to schoolchildren, Raspberry Pi (Trading) Ltd was set up as a separate entity in 2012 and its computers have gone on to become the best-selling British computer. The company has sold over 60 million devices, which range in price from less than £4 to approximately £60.

Raspberry Pi enjoyed a very successful 2023, with revenues rising by 41 per cent and pre-tax profits almost doubling. Seeking further growth, it was announced earlier this year that the company would be taking itself public, choosing to list on the London Stock Exchange. Chief Executive, Eben Upton, was keen to stress that the decision to list in the company’s home nation was “not a patriotic decision”, and that London was “a better home” for Raspberry Pi than New York.

The listing went live for ‘conditional dealing’ on 11 June 2024, and enjoyed initial success, with the share price increasing by 100.6 pence. A further rise of 14 per cent was recorded on the first day of open trading on 14 June . The company now has a market capitalisation of approximately £719.51 million. Additionally, the capital raised on listing is expected to fund new engineering projects and the strengthening of supply chains.

The Raspberry Pi news comes at a crucial time for the London Stock Exchange, with a sleuth of other companies, including those in the technology sector, delisting or turning elsewhere. It represents one of the biggest UK tech listings in years and offers a huge boost to the City. New York was fast becoming the go-to market for British tech companies, but there are hopes that this may be a turning point. Arm Holdings, which designs computer chips, recently chose to IPO in New York over London despite courting from the Prime Minister, and gambling group, Flutter, recently moved its primary listing to the US. Arm Holdings had previously been simultaneously listed in the UK and US before going private in 2016. Despite snubbing the London Stock Exchange this time round, Arm Holdings has significantly invested in Raspberry Pi.

Raspberry Pi’s initial success, coupled with the news that the London Stock Exchange has recently taken back the crown of being the largest exchange in Europe, has the potential to boost confidence in UK equity markets. After two years at number two, London has once again beaten Paris to the number one spot, amid concerns surrounding political instability and the French election. This general trend is reflected in comments made by City analysts at Peel Hunt who have stated that UK capital markets are showing ‘tentative signs’ of recovery. What’s more, confidence could soon be bolstered further following news that clothing giant, Shein, is exploring a flotation in the UK.

It remains to be seen whether Raspberry Pi’s listing will inspire a sustained level of increased confidence in UK capital markets but if it encourages other up-and-coming companies to list in London, this can only be a positive for all of us.