Why Raspberry Pi had a FTSE Christmas boost
Raspberry Pi has held up the FTSE 250 on the first trading day after Christmas, with its stock price surging as much as 18 per cent today, pushing it to become a £1bn company.
The Cambridge-based tech firm’s share price had been languishing just below £4 since the firm floated on the London Stock Exchange in June, until the last month.
Raspberry Pi’s IPO was hailed as a sign that the London Stock Exchange could be set for a listing rebound after a bruising few years, but the firm struggled to boost its share price after the initial excitement.
However, the firm’s stock price has doubled during December, reaching a new high of £7.20 today, thanks in part to a new investor.
Last week, a stock exchange notice revealed that US hedge fund SW Investment Management crossed a voting rights threshold, now holding 3.59 per cent of the company’s shares.
The $378m (£301m) hedge fund was founded in December 2015 by Stephen White, and seems to be its first big international investment.
The hedge fund mainly invests in American tech companies, with wireless communications firm Uniquiti being its largest holding, according to US Securities and Exchange Commission filings from last month.
The £48m stake it has bought in Raspberry Pi would make the UK company the hedge fund’s third largest holding. Its intentions behind the purchase are unclear.
Raspberry Pi entered the FTSE 250 in September, and published its maiden set of results as a publicly listed firm the day after.
The company surpassed expectations, with revenue soaring 61 per cent to $144m (£108m) in six months to 30 June, while profit jumped 47 per cent to $34.2m (£25.6m).
Raspberry Pi’s recent stock success has also been attributed to its tightly held shareholder base, with more than half of its shares held by only two shareholders, leaving the market fighting over the remaining stocks.