LONDON: Raspberry Pi Ltd, a leader in low-cost, high-performance computing, is considering an initial public offering (IPO) and intends to applying for admission of its ordinary shares to the premium listing segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange.
Raspberry Pi is a leading designer and developer of high-performance, low-cost single board computers (“SBCs”) and compute modules for industrial IoT customers and embedded uses, as well as for enthusiasts and educators, in markets worldwide.
Eben Upton, CEO of Raspberry Pi, commented: “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, giving them the chance to discover computing and get excited about it. But from the very beginning we saw customers using our products in a staggering variety of applications across a broad swathe of markets, and as we recognised the potential for affordable technology to make a meaningful difference not just in education but in countless other contexts, the scale of our ambition grew. Twelve years later, we have sold over 60 million units in over 70 countries around the world.
A remarkable ecosystem of individuals and businesses has grown around Raspberry Pi, supporting both the enthusiast and industrial markets to innovate and succeed with our products. We’re now seeing the former feed into the latter, as the first generation who encountered Raspberry Pi as young people take their experience with our technology into their professional careers, and today the industrial and embedded market accounts for 72% of units sold. Raspberry Pi’s unique culture is driven by an exceptional team, dedicated to doing excellent work that pushes the boundaries of computing innovation. We build the products we want to use ourselves, and we’re not easily satisfied.
For the Raspberry Pi Foundation, a patient and supportive shareholder, this IPO brings the opportunity to double down on their outstanding work to enable young people to realise their potential through the power of computing. We’ve hugely appreciated their support on our journey so far and are delighted that the Foundation will remain a major shareholder. Raspberry Pi enthusiasts will see the next phase of our development offer unprecedented opportunities for creativity and innovation. Our commitment to low-cost computing, a fundamental part of what is special about Raspberry Pi, is unchanged.
In an ever more connected world, the market for Raspberry Pi’s high-performance, low-cost computing platforms continues to expand. We have the technology roadmap to play an increasingly significant role, and we are excited to embark on the next stage of our growth.”
Raspberry Pi’s standard product portfolio comprises SBCs, compute modules, complementary accessories, and semiconductors. Raspberry Pi also designs, develops, and procures the manufacture of custom hardware and software solutions for some of its largest OEM customers.
Since Raspberry Pi began trading in 2012, it has sold over 60 million SBCs and compute modules, of which 7.4 million were sold in 2023.
Raspberry Pi maintains close working relationships with world-class technology partners, including strategic shareholders Sony and Arm, leveraging their complementary capabilities in semiconductor intellectual property development, semiconductor and electronic product manufacturing, chip design on advanced process nodes, and radio frequency and power engineering.
Raspberry Pi estimates that its current total addressable market (“TAM”) is approximately $21.2 billion, reflecting a substantial opportunity for it to capitalise on and sustain its strong growth trajectory.
Raspberry Pi’s products are sold in three principal markets: the Industrial and Embedded market, which in 2023 accounted for 72 per cent of unit sales; the Enthusiast and Education market, which in 2023 accounted for 28 per cent of unit sales; and the semiconductor market, which Raspberry Pi entered in early 2021 with the launch of its first semiconductor product, the RP2040 microcontroller.
Raspberry Pi is a subsidiary of the Raspberry Pi Foundation, a UK charity founded in 2008, with the goal of promoting interest in computer science among young people. Raspberry Pi has distributed approximately $50m in dividends to the Foundation since 2013, which has been used to advance its educational mission globally.
Raspberry Pi has a strong track record of revenue growth and profitability. For the year ended 31 December 2023, revenues were $265.8 million, with gross profit of $66.0 million, and operating profit of $37.5 million, as well as adjusted EBITDA of $43.5 million.
The offer would be comprised of new shares to be issued by the company and existing shares to be sold by certain existing shareholders, including the Raspberry Pi Foundation, Raspberry Pi’s existing majority shareholder.
The offer would also be made to Intermediaries using the Peel Hunt REX portal for distribution to retail investors in the United Kingdom.
The Company has engaged Jefferies International Limited (“Jefferies”) and Peel Hunt LLP (“Peel Hunt”) as the Joint Global Co-ordinators, Joint Sponsors and Joint Bookrunners in the event the Offer proceeds.
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