(Alliance News) - Raspberry Pi Ltd on Wednesday confirmed plans to start trading on the Main Market of the London Stock Exchange in June, as the demand for artificial intelligence grows.

Cambridge, England-based Raspberry Pi, known for its cheap and cheerful computers, said it expects to raise USD40 million from the issue of new shares in connection with the initial public offering. Additionally, existing shares representing up to a 10% stake will be sold by Raspberry Pi Foundation, the firm's majority investor.

Funds raised in the IPO will be used to increase Raspberry Pi's sales force, targeting more sales in the education and design consultancy sectors, as well as to pursue large-volume original-equipment-manufacturer opportunities.

In addition, it said that cornerstone investors Arm Technology Investments 2 Ltd, part of computer chip designer Arm Holdings PLC, and Lansdowne Partners (UK) LLP have agreed to purchase USD35 million and up to USD20 million in the IPO, respectively.

Paul Williamson, senior vice president & general manager of Arm's Internet of Things Line of Business said: "With a shared vision to lower barriers to innovation and make computing accessible for everyone, Arm and Raspberry Pi are natural collaborators - and as demand for more compute and AI at the edge grows, Raspberry Pi's solutions will continue to drive the adoption of high-performance IoT devices. Following our strategic investment in the business last year, we look forward to increasing our stake as Raspberry Pi steps into this new exciting chapter."

Raspberry Pi makes low-cost single board computers and compute modules for industrial 'internet-of-things' uses, as well as for enthusiasts and educators.

Raspberry Pi has sold more than 60 million such SBCs and compute modules since it started trading in 2012, with 7.4 million sold in 2023 alone. It expects to sell 8.4 million in 2024 and believes it has a total addressable market of USD21.2 billion.

Raspberry Pi recorded USD38.2 million in pretax profit in 2023 on USD265.8 million in revenue.

The company's size would make FTSE 250 index inclusion likely.

Non-Executive Chair Martin Hellawell said: "We are delighted to confirm our intention to float on the London Stock Exchange, underscoring our confidence in the UK as the home for innovative and growing global businesses. Raspberry Pi is a British computing success story, and this marks the next stage in the evolution of the company.

"Through the team's dedication to excellence in high-performance, low-cost, general-purpose computing, Raspberry Pi has been transforming the global computing landscape since its first product was launched in 2012, successfully marrying a social agenda with commercial focus."

Hellawell was CEO of FTSE 250 technology listing Softcat PLC. He currently also is chair of used-tech sales platform musicMagpie PLC and of Gamma Communications PLC. Gamma is a provider of communication services to the UK, German, Spanish and Dutch markets.

Raspberry Pi Founder & Chief Executive Officer is Eben Upton.

By Tom Budszus, Alliance News slot editor

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