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19 Nov 2024
British personal computer manufacturer Raspberry Pi has confirmed its intention to go public in London, providing a modest boost to a city that has lagged behind in the European IPO resurgence.
The IPO will include new shares to raise $40 million and existing shares from current stakeholders, the company announced on Wednesday. Raspberry Pi, predominantly owned by a charitable foundation, plans to debut on the main market of the London Stock Exchange in June.
This relatively small IPO offers a positive sign for the struggling UK market, which has captured just 2% of the $12.3 billion raised in European IPOs this year, the lowest share in decades according to Bloomberg data. The potential for higher valuations abroad has contributed to the London IPO market's stagnation, as UK stocks are currently trading at a discount compared to major international markets.
Earlier this month, Bloomberg News reported that Raspberry Pi was targeting a valuation of approximately £500 million ($637 million) through this listing. If successful, it would be London’s largest IPO since Kazakhstan’s Air Astana JSC listed its global depositary receipts in February.
Arm Holdings Plc's investment division has committed to purchasing $35 million in shares during the IPO, with Lansdowne Partners UK LLP planning to invest up to $20 million as cornerstone investors. Both firms are existing shareholders.
Raspberry Pi, known for producing affordable computers favored by hobbyists and educators, has previously secured funding from Arm and Sony Group Corp.'s semiconductor division. Notably, British chip designer Arm opted to list in New York instead of London.
Last year, Raspberry Pi reported revenues of $265.8 million and an adjusted EBITDA of $43.5 million. Jefferies International Limited and Peel Hunt LLP are serving as joint global coordinators for the IPO.
The funds from the new shares will be allocated for engineering capital expenditures, enhancing supply chain resilience, and general corporate purposes.
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