UK budget computer firm Raspberry Pi saw its shares skyrocket by up to 40% on Tuesday morning following its initial public offering (IPO). The shares peaked at 392p

in early trading, significantly above the IPO price of 280p set prior to market opening.

The IPO terms indicated a valuation of £541.6 million, according to a stock market update from the company. Raspberry Pi announced that the listing would generate £166 million.

Trading commenced under "conditional dealing," allowing institutional investors and those on the London Stock Exchange as of June 11 to participate, with full open trading set to begin on Friday.

Eben Upton, CEO of Raspberry Pi, stated: “The quality of the interactions during the marketing process has reinforced our belief that London has the right calibre and sophistication of investors to support growing, ambitious technology businesses such as Raspberry Pi. The positive reception we have received is a testament to the world-class team we have assembled and the strength of the loyal community with whom we have grown.”

The IPO has been heralded as a significant victory for the London market, which has recently seen numerous UK-listed firms being acquired or relocating abroad. Notable examples include Paddy Power-owner Flutter moving its main stock market listing to New York, German-owned Tui delisting from London, and UK chip maker Arm Holdings opting for Wall Street over London for its stock market return.

Kathleen Brooks, research director at XTB, described the listing as a “warm welcome” from investors. She added, “This is a sign that there is life in the London stock market, and companies can derive value from listing in London. It is also a decent payday for the company’s founders and directors. While the value PC maker has a small listing compared to some US tech giants, it has connections to major players in the tech sector and recently secured funding from Sony, with Arm being one of its cornerstone investors.”

Additionally, there are reports that Chinese fast-fashion giant Shein is preparing to file for a listing in London.

As part of the IPO plans, Arm and fellow Raspberry Pi investor Lansdowne Partners have agreed to purchase shares worth 35 million USD (£27.5 million) and 20 million USD (£15.7 million), respectively.

Raspberry Pi intends to use the funds raised for engineering projects, enhancing its supply chain, and other general corporate purposes.

Founded by computer scientist Eben Upton in 2008, Raspberry Pi released its first product in 2012. Since then, it has sold over 60 million single-board computers. The group’s products are available in more than 70 countries worldwide.

Raspberry Pi is a subsidiary of the Raspberry Pi Foundation, a UK charity established alongside the company in 2008 to promote interest in computer science among young people. As a major shareholder, the foundation has received around 50 million USD (£39.7 million) in dividends since 2013, which have been used to support its global educational mission.

In 2023, Raspberry Pi reported revenues of 265.8 million USD (£211.1 million) with operating profits of 37.5 million USD (£29.8 million). Photo by Jwrodgers, Wikimedia commons.