Investors are intensely interested in a compact, low-cost computer worth $35.
Raspberry Pi's stock skyrocketed by approximately 40% to hit £3.92 ($4.99) during the early trading hours. This surge reduced slightly by 11:15 a.m. E.T., standing at £3.85 ($4.90), which is roughly 38% more than its listing price.
The company, founded in 2012, began as a commercial entity of the Raspberry Pi Foundation - a charity founded four years earlier to encourage computer science education in schools. It has gained notoriety for manufacturing small, complete computers that can be housed on a single board. These boards, resembling credit cards in size, can be connected to larger devices like desktop screens or used as components to power equipment including smart speakers and robots.
To date, Raspberry Pi has managed to sell more than 60 million computers across the globe, as mentioned on its official website. The majority of its clients are industrial customers, such as tech companies and manufacturers, who account for more than 70% of its sales. Their products can be found in various applications ranging from high-tech farming systems to self-pouring beer taps. The remaining units are sold to educational institutions and computer science enthusiasts.
In 2022, the University of Cambridge hailed one of the company's computers, the cheapest one priced at only $35, as the "best-selling computer originating from the UK."
A momentous success for London's stock market
The IPO, valued at £166 million ($211 million), is the second-biggest in the UK for this year, according to data provider Dealogic.
Raspberry Pi has planned to use the money gained from the IPO to enhance product development and expand their educational projects.
Raspberry Pi's market debut serves as a triumph for London's sluggish stock market, which has seen various businesses turn against it in recent times or opt for New York for their public listings. One such example is British chipmaker Arm, which recorded the largest global IPO when it listed on New York's Nasdaq in September of 2021.
Eben Upton, the Cambridge University alumnus and CEO of Raspberry Pi, said in a statement on Tuesday, "London offers the ideal level of investor to support expanding, ambitious technology businesses like Raspberry Pi."
As per the company's IPO prospectus, the Raspberry Pi Foundation holds the majority stake in the company. A Sony subsidiary also holds a minor stake.
Russ Mould, the investment director at AJ Bell, explained to CNN, "Although not a massive share offering, there's evidently a strong urge for UK IPOs, especially those in the tech sector, which have been relatively scarce in recent years. This might have created accumulated demand."
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The success of Raspberry Pi's IPO, valued at £166 million ($211 million), has attracted interest from tech companies and manufacturers, who see potential in investing in the company's product development. Raspberry Pi's affordable tech products, such as the $35 computer, have a significant presence in various industries, from high-tech farming systems to self-pouring beer taps, demonstrating its potential in the business world.
