Raspberry Pi’s IPO

The views expressed in this article are those of the author and not of Castellain Capital LLP. Nothing herein is intended as investment advice and no recommendation is given regarding the stock mentioned in the article. The author has applied for shares in Raspberry Pi’s IPO.

Over the years, I’ve bought many a Raspberry Pi. My kids and I have used them for school projects, weekend tinkering, and generally just rediscovering enjoyment in computers. These little devices have been the cornerstone of many side projects, blending learning with fun. It’s a genuine pleasure to witness Raspberry Pi evolve from a charitable and educational endeavour to a serious industry player, all while still retaining the playful, accessible charm that endeared it to so many.

I’m delighted that Raspberry Pi is now choosing to IPO on the London Stock Exchange. A British tech business (hardware no less!) that manufactures in the UK, is truly successful, innovative and is a force for good. And how positive this could be for the London market; this isn’t merely another IPO – it’s a bright spot amid a drought of new listings and a wave of market departures.

The UK market has been in a moribund state. Gloom abounds among UK-focussed investors. Too many British companies have opted for US listings, and outflows from the UK have been large and consistent. It is much lamented that pension funds allocate so little to UK equities, given their long-term time horizons and the amounts of capital that they control. Instead we see them piling into gilts which, in the magical mystery world of LDI investing, they somehow are not losing money on – despite some long-dated gilts having plummeted as much as 70%!

But wouldn’t it be great if Raspberry Pi’s decision to list in London was the early signal of a reversal of this trend? A statement that the UK remains a fertile ground for innovation and growth. That capital markets in the UK can still recognise and support exciting businesses and provide them with the growth capital they need to continue their journey.

But this requires the co-operation and commitment of many parties: investors must be willing to back quality businesses over the long-term; companies must uphold their responsibilities to shareholders and operate with honesty, realism and transparency; investment bankers must price these offerings fairly; and regulators must balance their obligations to protect investors without crushing entrepreneurialism and the animal spirits of the markets.

I’ll be supporting the Raspberry IPO with my own money (unfortunately it’s outside of Castellain Capital’s mandates). I hope that many institutional investors will do the same, and that the company can deliver on its promises. May this mark the early beginnings of a revival in the fortunes of the London market.

By Rob Goldsmith