The Raspberry Pi's claim to fame is simple: it allows you to build a personal computer that's cheap, inconspicuous, and no larger than a credit card.
Looking at one of their PCs, it looks like the exposed mechanical components of a laptop that would otherwise be completely uninteresting.
But that's exactly the goal of Raspberry Pi: to teach people about computing and coding. Founded 16 years ago, the Cambridge-based group is now preparing for a long-awaited boost to its IPO on the London Stock Exchange. The company's shares are trading at £2.80 ($3.56) a share, giving it a market capitalization of about £542 million ($688 million).
Trading in the shares will begin on June 14th.
“In an increasingly connected world, the market for Raspberry Pi's high-performance, low-cost computing platform continues to grow,” said Eben Upton, CEO of Raspberry Pi.
First of all, what is Raspberry Pi?
Raspberry Pi had its humble beginnings as a charity in Cambridge, where a team of engineers and computer scientists came together to build a PC with a difference.
The computer is built, as the University of Cambridge puts it, “to withstand the rigors of childhood,” and the company has sold more than 60 million computers worldwide since it was first launched in 2012.
The Raspberry Pi's secret sauce has four simple yet important criteria: the PC must be programmable, fun, affordable, and robust.
Currently, the cheapest Raspberry Pi computer costs just $15.
People use Raspberry Pi to understand programming and test hardware projects and other factory machinery.
“The scale of our ambitions grew as we realized that affordable technology could make a meaningful difference not only in education but in countless other settings,” Upton said. Financial Times.
Over the past 12 years, Raspberry Pi has released several models, with profits going to the eponymous foundation, which owns 73% of the company, to support children's education. The Raspberry Pi Foundation also provides free resources and educational programs for young people.
The commercial company expects revenue to rise 41% year-on-year to $266 million in 2023, while profits will double to $38 million.
A November filing valued the company at about $600 million, including new funding, around the same time that chipmaker Arm acquired a minority stake in the company.
Chris Ratcliffe—Bloomberg/Getty Images
Raspberry Pi goes public
The ultra-niche computer maker's IPO has been in the works for several months.
One reason for the interest is the boost it would provide to the London Stock Exchange, where many big-name companies, including Arms, have eluded the exchange despite being within reach, and London in particular has lost its allure for the technology sector in recent years.
At a time when other European markets are seeing a flurry of initial public offerings (IPOs), including Switzerland's Galderma Group and Spain's Puig Beauty Group, as some companies wind down their listings, things aren't looking good for the London Stock Exchange (LSE).
Indeed, Raspberry Pi could be the perfect poster child for reaffirming London's appeal as a major European tech hub: the company has users of all ages and sectors, is purpose-driven and generates strong revenues through the quality of its products.
“Raspberry Pi's listing is strategically crucial as it adds an established and profitable technology company to the UK market,” Dan Ives, investment analyst at AJ Bell, said in a note last month.
“London severely undervalues tech companies compared to the US and any efforts to address this issue is a step in the right direction. In the best case scenario, if Raspberry Pi shares surge in their IPO, it will inspire more tech companies to list in London, demonstrating investor enthusiasm for the sector and their willingness to support UK tech leaders.”
The Raspberry Pi reminds us to never underestimate the power of a simple but effective product – it remains to be seen whether it can help the UK stock market in a similarly effective way.
