Raspberry Pi gets warm welcome from UK stock market
Some good news for the UK , the stock market debut of Raspberry Pi has seen extremely strong demand, and the stock has popped at the open. It jumped as high as 390p at the open, well above the 280p listing price. This jump in the stock price will push up the company’s market capitalization towards £700mn, at the time of the IPO pricing, the market cap of Raspberry Pi was £542mn.
This is a sign that there is life in the London stock market, and companies can derive value from listing in London. It is also a decent payday for the company’s founders and directors. While the value PC maker has a small listing, especially compared to some of the tech giants in the US, it is a company with links to its bigger brothers and sisters in the tech sector, and prior to listing it had recently secured funding from Sony and Arm is one of its cornerstone investors.
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This listing has been a test for the UK market, and it seems to have passed with flying colours. The question now is, will it attract other tech companies to London? The other question is whether Shein, the Chinese fast-fashion brand, will receive the same warm welcome when it may list later this year. Raspberry Pi has listed at a good time, tech stocks are surging and are leading global financial markets once more, so it can jump on the coat tails of this mega theme for global markets. For example, Nvidia, HP and Hewlett Packard are in the top 10 performing stocks in the S&P 500 in the past month, while the semiconductor and the computer and electronics sectors are the top performing sectors in the S&P 500 in recent weeks.
Will Shein get the same warm welcome?
In contrast, fast-fashion giant Shein is a more controversial company, and consumer stocks have underperformed in global markets in recent weeks.
Overall, we could see some volatility in the Raspberry Pi share price on Tuesday, but it seems to have received a warm welcome from the UK market.
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