Raspberry Pi's stellar debut boosts the UK stock market

The UK stock market received a much-needed boost today as affordable PC provider Raspberry Pi made a successful debut on the London Stock Exchange. The company's shares were initially priced at 280p each, valuing Raspberry Pi at £541.6m. However, within minutes of trading, the shares had risen to 392p each. This successful debut is a positive sign for the UK market, which saw a 49% decrease in companies going public in 2023 compared to 2022, with just 23 companies going public.

The strong start for Raspberry Pi, which raised £166m during the IPO, is particularly significant for the technology sector, which has been a driving force on US stock markets in recent years. Company founder and CEO Eben Upton described the debut as “the culmination of a lot of work by a lot of people.”

Raspberry Pi was founded in 2012 with a mission to provide high-performance, low-cost computing platforms to enthusiasts and engineers around the world. The company has sold more than 60 million low-cost single-board computers since its launch, including 7.4 million last year. It's also already profitable, posting an operating profit last year of $37.5 million on sales of $265.8 million.

Despite starting with the goal of providing an affordable computer for young people and hobbyists, nearly three-quarters of Raspberry Pi sales are now for industrial applications such as security cameras and ventilation controls. Upton noted the surprise when he realized that many of his enthusiastic customers are professional design engineers who bring Raspberry Pi to their workplaces.

Upton's stake in the business was valued at £11.9m at the offer price. He explained that Raspberry Pi's advantage in the market is twofold: its end-to-end capabilities, from building semiconductor IP to helping customers design, and its compelling advantages in structure of costs, which allow you to sell products at low cost.

Raspberry Pi's successful debut on the London Stock Exchange is a hopeful sign for the UK market, and now all eyes are on whether Chinese fast fashion giant Shein will opt to list in London.