Raspberry Pi Prepares for a UK IPO, Uplifting the London IPO Market

Raspberry Pi, renowned for its user-friendly computers aimed at coding enthusiasts, has initiated preparations for an initial public offering (IPO) in London with the assistance of Peel Hunt and Jefferies banking advisors. The move represents a significant positive development for the UK's capital markets, countering the trend of companies shifting towards the US market.

In an interview, Eben Upton, Raspberry Pi's Chief Executive Officer, revealed that the company is in the preliminary phase of planning for a listing on the London Stock Exchange. This strategy is aligned with expectations for a revival in the IPO market.

Previously contemplating a listing in early 2022, Raspberry Pi, overseen by a charitable foundation, has since secured funding from prominent investors such as ARM Holdings Plc and the semiconductor division of Sony Group Corp. The company's valuation reached approximately $560 million after ARM's investment.

Upton emphasised that US investors would still be attracted to the company even if it opts for a UK listing. He explained that there is no significant advantage in listing in the US, based on his experience meeting fund managers in New York. Upton asserted that London-listed companies are fully capable of accessing American capital.

The London IPO market is gradually showing signs of revival after a period of dormancy. Recent developments include Azrieli Group Ltd., an Israeli real estate company, exploring a potential London listing for its data centre subsidiary Green Mountain, as reported by Bloomberg News. 

Air Astana, Kazakhstan's national airline, and The London Tunnels Plc, an upcoming tourist attraction, have indicated intentions for UK stock-market debuts. 

The resurgence of activity is being closely monitored in a market that has experienced a significant downturn in IPOs. Last year, IPOs in the UK amassed just about $1 billion, the lowest in decades, according to Bloomberg data.

Despite the trend of companies like ARM, the UK semiconductor designer, opting for a US listing and others like German travel company TUI AG planning to withdraw from the London market, there remains optimism. Bankers and executives suggest that merely relocating does not guarantee a reevaluation of share prices.

Upton concluded by emphasising the importance of companies having a compelling equity story and the responsibility to educate investors, affirming that American fund managers will engage if the story is convincing.