11th Jun 2024 10:29
(Alliance News) - The successful initial public offering of shares in Raspberry Pi Holdings PLC was viewed as a "major win" for both the company, and the London stock market, analysts on Tuesday said.
Shares in the Cambridge, England-based maker of low-cost single board computers and compute modules rose as high as 392.28 pence each Tuesday morning in conditional trading.
This is well above the 280p per share IPO price disclosed by Raspberry Pi earlier Tuesday.
By mid-morning, shares were trading at 356.44p, still well above the IPO price and implying a market value for Raspberry Pi of around GBP689 million.
At the IPO price, Raspberry Pi would have a market value of around GBP541.6 million, the company said in a statement.
Chief Executive Eben Upton said: "The quality of the interactions during the marketing process has underlined our belief that London has the right calibre and sophistication of investor to support growing, ambitious technology businesses such as Raspberry Pi."
The total offer size of the share sale amounts to GBP166 million, representing about 31% of the company’s ordinary shares.
Unconditional trading in Raspberry Pi shares will begin on Friday in London under the ticker 'RPI'.
Kathleen Brooks, research director at XTB said the IPO was "good news for the UK" with the market debut seeing "extremely strong demand."
"This is a sign that there is life in the London stock market, and companies can derive value from listing in London," Brooks commented.
Brooks said the listing has been a "test for the UK market, and it seems to have passed with flying colours."
"The question now is, will it attract other tech companies to London," she asked?
"Raspberry Pi has listed at a good time, tech stocks are surging and are leading global financial markets once more, so it can jump on the coat tails of this mega theme for global markets," she noted.
Victoria Scholar, head of investment, interactive investor agreed it was positive news for the London market.
"This is a major win not just for the company itself but for London markets more broadly which have been suffering with reputational damage since Brexit."
Scholar described it as a "much needed optical boost to the UK markets, proving that New York isn't the only game in town and that a business can still float successfully and enjoy strong investor demand in the UK capital."
By Jeremy Cutler, Alliance News reporter
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