Raspberry Pi could qualify for FTSE 250 status within three months of London IPO
Analysts expect Raspberry Pi to achieve FTSE 250 status in the latest shake-up on the London markets, less than three months after the computer maker went public.
The Cambridge-based group’s IPO in June sparked a surge in investor interest, with buyers of all sizes keen to capitalise on Raspberry Pi’s growth potential.
Raspberry Pi could already be in line for promotion to London’s mid-cap index in a looming shake-up, which will be based on closing prices on September 3 and take effect on September 23.
Growth potential: Raspberry Pi makes products used by enthusiasts to build computer servers or retro game consoles
Founded in 2012, Raspberry Pi makes products that allow enthusiasts to build computer servers or retro game consoles.
The Raspberry Pi IPO was seen by some as a rare victory for the London market, after a period of struggling to attract new companies and companies defecting to foreign exchanges and private ownership.
A few days later, shares rose again as retail investors were given the opportunity to join the company.
Raspberry Pi The shares are currently trading at 401p, up more than 40 per cent from the IPO price of 280p.
Panmure Liberum analysts Joachim Klement and Susana Cruz believe the company, which now has a market capitalisation of £782.2 million, will be promoted to the FTSE 250 next month.
They predict a market cap of £397 million Puretech Health will be demoted from the index, but the pair noted that “no stock in the FTSE Small Cap is currently eligible for automatic promotion to the FTSE 250”.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘The company’s original aim was to provide affordable IT for young people so they could buy and try it with confidence, giving them the chance to explore computing.
Customers are now using the single-board computers in a variety of applications in a variety of markets. In addition, the computers are more efficient to produce than older desktop and embedded PCs, because they consume 90 percent less electricity.
Raspberry Pi is now producing computer modules for industrial customers in the Internet of Things sector. They are making devices with sensors, processing power, software and other technologies that connect to the Internet and exchange data over the Internet.
There is now a lot of excitement about the potential of the technology, as so-called ‘edge computing’ becomes increasingly popular, where data is processed closer to where it was created, allowing things to work faster.
‘But with plenty of competitors for its tiny throne, Raspberry Pi will have to work hard to stay ahead of the race.’
Raspberry Pi will publish its first performance report on September 24, when the group publishes its half-year results.
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