Raspberry Pi Announces an "Expected Intention to Float" as It Seeks a Cash Influx for Further Growth
Company promises a roadmap to growth that includes international expansion and new products — bringing with them higher prices.
Raspberry Pi has announced that it is to publish a registration document ahead of a planned initial public offering (IPO) on the London Stock Exchange — making it a publicly listed company for the first time, while offering its existing investors a profit-taking opportunity.
"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," says Raspberry Pi co-founder and chief executive Eben Upton of the move.
"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 recognized 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."
Rumors that Raspberry Pi planned to raise funds and provide its existing shareholders with a potential profit-taking opportunity through a public flotation have been swirling for years — but it was only in January this year that the company officially confirmed it was considering an IPO, naming the London Stock Exchange as being the target for listing while Upton reassured fans that hobbyists would remain "incredibly important" to the company even as it ceded some control to shareholders.
"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 realize their potential through the power of computing," Upton claims, referring to the not-for-profit educational arm of the business, which will not form part of the flotation.
"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."
Money from the flotation would be used, according to Raspberry Pi's announcement, to grow the company in both the industrial and embedded and the "enthusiast and education" markets — the latter, the company claims, being "the 'heart' of the Raspberry Pi movement."
Plans for this growth include "further geographic expansion" into China, India, sub-Saharan Africa, the Middle East, and South America — but the news of "product variants which better serve Raspberry Pi's customers' needs and can therefore be offered at higher ASPs [Average Selling Prices]" may raise eyebrows, even following Upton's promise of an ongoing commitment to low-cost computing.
A proposed valuation for the company was not been disclosed as part of the announcement; it had previously been valued at around $500 million when Arm invested as a minority shareholder.