Jane Sheppard here, reporting from the heart of north Florida. Raspberry Pi, the British personal computer maker, has confirmed plans for an initial public offering (IPO) in London. This move marks a small but significant step for the city, which has been lagging behind in the broader revival of listings in Europe.
In a statement released earlier this week, the company announced that the offering will consist of new shares to raise up to $40 million, coupled with existing shares sold by stakeholders. This is a welcome boost to the struggling UK market, which, according to data compiled by Bloomberg, currently holds a mere 2% share of the $12.3 billion raised in IPOs in Europe this year. This is the lowest it has been in decades.
Raspberry Pi’s Valuation and Investment
The company is reportedly seeking a valuation of £500 million ($637 million) through this listing. This would make it the largest IPO in London since February, when Kazakhstan’s Air Astana JSC listed its global depositary receipts.
Arm Holdings Plc, the investment arm of chipmaker, has agreed to invest $35 million in the IPO. Additionally, Lansdowne Partners UK LLP will purchase up to $20 million. Both are existing shareholders in the company.
Company Background
- Raspberry Pi is known for its production of low-cost computers, making it popular amongst hobbyists and educators.
- In the past, the company has raised money from Arm and Sony Group Corp.’s semiconductor division.
- British chip designer Arm had itself chosen to list in New York instead of London.
Financial Highlights and Future Plans
Last year, Raspberry Pi reported a revenue of $265.8 million and adjusted earnings before interest, taxes, depreciation, and amortization of $43.5 million. Jefferies International Limited and Peel Hunt LLP are joint global coordinators for the IPO.
The company plans to utilize the funds from the sale of new shares to enhance its supply chain resilience and for general purposes. Furthermore, a portion of these funds will be allocated towards engineering capital expenditure.
On behalf of Suwannee County residents and the broader north Florida community, I will continue to monitor and report on the ever-evolving world of business, finance, and local happenings. Stay tuned for more updates.
