Raspberry Pi: From Hobbyist Favorite to Public Company

Raspberry Pi: From Hobbyist Favorite to Public Company
Image Source: Rasberry PiBy Thu, 13 Jun 2024 04:48:04 GMT

Who would have thought that Raspberry Pi, the maker of tiny, affordable single-board computers, would become a public company? Yet, this is exactly what’s happening. On Tuesday morning, Raspberry Pi priced its initial public offering (IPO) on the London Stock Exchange at £2.80 per share, valuing the company at £542 million ($690 million). Following the announcement, shares surged 32% to £3.70, indicating that Raspberry Pi could raise over $200 million during its IPO process.

For now, only certain institutional shareholders can trade Raspberry Pi shares, but retail investors will have access starting on Friday. This listing marks a significant win for the London stock market, which has seen companies like Deliveroo and Wise choose it over the more liquid U.S. stock markets.

Raspberry Pi is renowned for its versatile, ARM-based computers, which have found favor among tech enthusiasts for creating media servers, retro game consoles, interactive dashboards, robotics projects, and more. The company's offerings, the cheapest of which is just $15, provide powerful, programmable solutions that are both cost-effective and energy-efficient.

Beyond the hobbyist market, Raspberry Pi has seen significant uptake in the industrial sector. Many companies now integrate Raspberry Pi units into their devices and facilities, with the industrial and embedded segment accounting for 72% of the company’s sales. Since its inception, Raspberry Pi has sold 60 million units, generating $266 million in revenue and $66 million in gross profit in 2023 alone.

The IPO will provide Raspberry Pi with the capital needed to expand its talent pool and enhance its product offerings. Plans include paying more engineers, bringing aspects of semiconductor design in-house, and introducing new, more expensive products to better serve customer needs. A 2023 fundraising round led by UK chip maker Arm Holdings previously valued Raspberry Pi at around £444 million ($561 million), with estimates now rising to roughly £500 million ($630 million).

Raspberry Pi Ltd is the commercial subsidiary of the Raspberry Pi Foundation, which aims to make coding accessible through low-cost, programmable computers. The Foundation remains the majority shareholder of Raspberry Pi Ltd. Other key shareholders include ARM and Sony Semiconductor Solutions Corporation, with ARM planning to increase its stake via the public listing.

"When we released our first product in 2012, our goal was to provide a computer that was affordable enough for young people to own and explore with confidence," said Eben Upton, Raspberry Pi CEO and founder. With its IPO and expanded resources, Raspberry Pi now has the "technology roadmap to play an increasingly significant role" in the computing industry.