Raspberry Pi shares soar on London market debut

Raspberry Pi shares soared on their London public markets debut as the technology company sought a £166 million fundraising.

The budget computer maker, whose products are popular among hobbyist and hobbyist coders, plans to use the money raised for engineering capital expenditures, bolstering its supply chain and “other general corporate purposes.”

With an initial public offering price of 280 pence per share, Raspberry Pi told investors it was seeking a valuation of £541.6 million.

Conditional trading in the group’s shares began at 8am on Tuesday, meaning only certain shareholders can buy and sell the shares at this time.

Retail investors will have to wait until Friday to start trading the company’s shares.

Raspberry Pi shares were up almost 27 per cent to 355p by mid-morning on Tuesday.

Raspberry Pi has already agreed to sell shares worth £27 million to semiconductor giant Arm and up to £16 million to investment management firm Lansdowne Partners.

Staff will see a £68m windfall from the IPO under an employee incentive scheme, equivalent to £660,000 for each worker.

The Raspberry Pi listing appears to represent a rare victory for London markets, which have struggled to attract new business and suffered defections to foreign stock exchanges and private ownership in recent years.

Building materials supplier CRH, plumbing specialist Ferguson and Paddy Power owner Flutter Entertainment recently moved their primary listing to Wall Street.

Capital attraction: only four companies went public in London during the first four months of 2024

Softbank Group also chose New York for Arm Holdings’ successful $55 billion IPO last year despite strong pressure from the UK government.

Many companies choose to list in the US rather than the UK because they can access much deeper pools of capital and are more likely to command higher valuations.

Only four companies went public in London during the first four months of 2024, but the Raspberry Pi listing could mark a turning point for the UK capital.

Eben Upton, CEO of Raspberry Pi, said: “The quality of interactions during the marketing process has underlined our belief that London has the right caliber and sophistication as an investor to back ambitious and growing technology companies like Raspberry Pi.” .

“The reaction we have received is a reflection of the world-class team we have assembled and the strength of the loyal community we have grown up with.”

The Raspberry Pi IPO comes amid reports that Chinese fast fashion giant Shein is closing in on a bumper £50bn IPO in London, which would be one of the biggest IPOs ever. the city.

Chancellor of the Exchequer Jeremy Hunt and Labour’s Shadow Business Secretary Jonathan Reynolds have held talks with Shein Chairman Donald Tang.

However, many potential investors have expressed concern about Shein’s listing due to major concerns about the company’s business practices.

The Singapore-based company has been accused of copying designs from other retailers, using cotton from Xinjiang, where the Uighur minority suffers human rights abuses and mistreatment of factory workers.

In May, a report by Swiss lobby group Public Eye found that some of Shein’s suppliers were still working 75 hours a week even though the company had promised to improve conditions.

The UK Sustainable Finance and Investment Association, a group of leading fund managers, has warned against the risk of London becoming a “place of last resort” for companies with poor human rights records.

Victoria Scholar, chief investment officer at Interactive Investor, said a Shein IPO “could be another event that would help enhance London’s attractiveness as a destination for potential major public listings and its reputation as a key post-Brexit global financial centre.” .