PC Maker Raspberry Pi Picks Banks for IPO, Choosing London Over New York

Swetha Gopinath, Bloomberg News

(Bloomberg) -- Personal computer maker Raspberry Pi appointed bankers at Peel Hunt and Jefferies to prepare a London initial public offering, a listing that would be a win for the UK capital after an exodus of companies to the US.

Raspberry Pi is in the early stages of preparing for listing on the London Stock Exchange, looking ahead to when the IPO market reopens, Chief Executive Officer Eben Upton said in an interview.

Raspberry Pi, best known for its beginner-friendly coding computers, considered a listing in early 2022. The company, controlled by a charitable foundation, has since raised money from the likes of ARM Holdings Plc and Sony Group Corp.’s semiconductor division. It was valued at about $560 million post the ARM investment.

US investors will still find the company if it lists in the UK, Upton said.

“There isn’t some magic arbitrage to be had from a U.S. listing,” Upton said. “Having spent time meeting fund managers in New York, I have come to the conclusion that there’s no compelling reason to think London-listed firms can’t access American money.”

London’s IPO market is slowly struggling back to life after months of inactivity. Israeli real estate firm Azrieli Group Ltd. is considering options for its data center arm Green Mountain including a potential London listing, Bloomberg News reported this month, while Air Astana, Kazakhstan’s flag carrier, and The London Tunnels Plc, a tourist attraction in the works, have flagged UK stock-market listings in recent weeks.

Read More: Banks See Slow Revival for UK IPOs, Bigger Rebound Some Way Off

Signs of a rebound in ativity are being closely watched in a market that’s grappling with a steep slump in listing activity. Just about $1 billion was raised in the UK via IPOs last year, the lowest level in decades, according to data compiled by Bloomberg.

ARM, the UK semiconductor designer company, chose to list in the US last year, while German travel company TUI AG last month said it plans to cancel its London listing. Irish building materials group CRH Plc and packaging company Smurfit Kappa Group Plc have already made that move.

Still, there’s some hope, with bankers and executives pointing out that a relocation alone will not lead to a rerating of share prices.

“American money mangers will find you if you have a compelling equity story,” Upton said, adding that companies have to do the “job” of educating investors.

--With assistance from Vinicy Chan.