Raspberry Pi stock surges after London IPO
- Reference: 1718107210
- News link: https://www.theregister.co.uk/2024/06/11/raspberry_pi_stock_surges_after/
- Source link:
The £2.80 ($3.57) offer price gave the company a market capitalization of approximately £541.6 million ($690.2 million) as conditional trading got underway. The offer size came to £166 million ($211.6 million), representing 30.7 percent of the corp's ordinary shares.
Should an over-allotment option be excised – as seems likely – that final offer size would be £178.9 million ($228 million), or 33 percent of Raspberry Pi's ordinary shares.
[1]
Unconditional trading is set to start on June 14.
[2]
[3]
It is all heady stuff and a far cry from the hobbyist beginnings of the first Raspberry Pi computer, [4]released in 2012 . The credit card-sized Arm-powered device could be bought for £30 ($38) once VAT and shipping were included. Today, a top-of-the-range 8GB Raspberry Pi 5 will cost a customer approximately £80 ($102), although a Raspberry Pi 3 can be picked up for around £35 ($44).
The final edition of the [5]Raspberry Pi 1 Model B+ is still in production and will remain so until at least January 2030. Introduced in 2014, the Pi gained the familiar 40-pin GPIO header and 512MB of RAM, yet it can hardly be called a ball of fire when compared to more modern hardware from the company.
[6]
While initially focused on education and hobbyists, [7]according to Raspberry Pi , 72 percent of its SBC and Compute Module sales went to industrial and embedded customers, with enthusiasts and educational users snapping up the remainder.
Europe is still the Raspberry Pi's largest market, accounting for 38 percent of units sold. Buyers in the US and Asia account for 29 percent and 26 percent of shipments, respectively.
Pi supremo Eben Upton was delighted with how things have gone so far and said in a statement: "The reaction that we have received is a reflection of the world-class team that we have assembled and the strength of the loyal community with whom we have grown.
[8]
"Welcoming new shareholders alongside our existing ones brings with it a great responsibility, and one that we accept willingly, as we continue on our mission to make high-performance, low-cost computing accessible to everyone."
Some users have [9]expressed mixed feelings about the IPO, noting that the money would be helpful for R&D and new projects, however, the flotation underlines the fact that the company is a business.
[10]Raspberry Pi IPO is oversubscribed multiple times
[11]Raspberry Pi unveils Hailo-powered AI Kit to make the model 5 smarter
[12]Meet Pi-CARD: Serving up a digital assistant on Raspberry Pi
[13]BASICally still alive: Classic language celebrates 60 years with new code and old quirks
That said, the Pi charitable foundation is a major shareholder and stands to [14]receive a cash boost thanks to the IPO.
As for the future, Upton told The Register earlier this year that while he remains at the helm of the organization, it would continue to do interesting work and try to keep making money.
The Reg hopes this is the case, but think it's fair to say that pleasing both the corporation's customers and shareholders might end up being more challenging than obtaining a Raspberry Pi 5 at launch. ®
Get our [15]Tech Resources
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[4] https://www.theregister.com/2012/04/16/raspberry_pi/
[5] https://www.raspberrypi.com/products/raspberry-pi-1-model-b-plus/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zmh0t0dRZdOUwTsrbFtUQgAAAEw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://investors.raspberrypi.com/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zmh0t0dRZdOUwTsrbFtUQgAAAEw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://www.reddit.com/r/raspberry_pi/comments/1csgclg/comment/l45q9gw/
[10] https://www.theregister.com/2024/06/07/raspberry_pi_ipo_is_oversubscribed/
[11] https://www.theregister.com/2024/06/04/raspberry_pi_ai_kit/
[12] https://www.theregister.com/2024/05/15/picard_offline_digital_assistant/
[13] https://www.theregister.com/2024/05/03/basic_60th_birthday_releases/
[14] https://www.theregister.com/2024/06/07/raspberry_pi_ipo_is_oversubscribed/
[15] https://whitepapers.theregister.com/
although a Raspberry Pi 3 can be picked up for around £35 ($44).
Raspberry Pi 4B 1GB is for sale right now through an official retailer for £33.60 including the VAT.
That makes them still $35 as they always were.
And now RPi foundation pivots from customer focused to shareholder focused.
Depends. Does anyone know how much of the company is in the hands of shareholders outside of Raspberry Pi Ltd? They just sold 30.7%, possibly will be up to 33% and Arm(??) have a shareholding, but is that even close to the 51% needed to effectively take over the company if someone manages to obtain all those traded shares? Or even enough shareholders to have any significant steerarge of the company?
"Or even enough shareholders to have any significant steerarge of the company?"
Public corporations are required by law to put their shareholders interests above all others. This usually involves making loads of cash to return to them in the form of dividends.
The Foundation is a charity and "the object of the charity is to further the advancement of education of adults and children, particularly in the field of Computers, Computer Science and related subjects"
The IPO is for the Foundation's subsidiary "Raspberry Pi Ltd ". The Foundation gets some of its income from the profits of Raspberry Pi Ltd.
Downvoters please check the definition of "fiduciary duty"
Publicly traded companies have a "fiduciary duty" [https://en.wikipedia.org/wiki/Fiduciary] to maximize each shareholder's return on investment. When properly expressed, this means that decisions must favor profit for the current quarter, potentially at the expense of longer range plans. Stuff like supporting the Pi 1 B until 2030. Is that a profit-driven decision, or was it motivated by technical or even nostalgic interest?
I feel that privately held companies have more flexibility in making future plans. It won't happen suddenly, but it will happen.
Excited to learn about the range of benefits I'll be able to access with my PiPlus™, PiPremium™ or PiPlatinum™ (limited availability) subscriptions.
Sad, but quite possibly true.
It is galling to think that...
The abysmal failure that is Troth Social is worth billions when they lost over $300M last quarter. The thing is nothing more than a penny stock but will give Trump billions in September.
Whereas R-Pi actually produces something useful.
A sad sign of the times.
"our mission to make high-performance, low-cost computing accessible to everyone."
Nope. A N100 NUC performances better, with the same cost as a Raspi including SD (brr) let alone SSD, power, case.
Chinese offer lower cost, with the performance
See Jeff Geerling's https://www.youtube.com/watch?v=jjzvh-bfV-E " Is it possible to buy brand a brand new Intel N100 mini PC for less than a Pi 5? Yes! But is it better? Watch the video and we'll see..."
The niche markets for Raspi:
* industrial / embedded
* hacking where you IO ports
Depends on your definition
of 'computing'.
To some its a gaming rig, others a desktop for social media & banking, still others a little box in the corner scrolling through the weather, air quality, news & diary for the day. If you want something inexpensive to learn programming, robotics or Linux on then the Pi is ideal - as are the other SBCs following in its wake.
For you it doesn't seem to be the right choice, but there's plenty out there for you to have at.
For me? After the last update to RISC OS Open my Pi400 now does the networking thing & I'm considering pulling my FDD boxes down onto an old USB stick - they're unlikely to occupy more than 2GB unzipped. Before the Pi launched the cost of the closest ARM powered board, the BeagleBoard, was well out of my price bracket. Possibly the greatest achievement of Raspberry Pi Ltd is that it has brought ARM boards & computing more generally (ie beyond a Windows shell) to a wider audience.
Goodbye little friend
It was nice knowing you.