Cambridge-based Raspberry Pi (RPI), the designer and maker of low-cost computing equipment, announced the release this week of Pico 2, a new single-board computer built on RP2350, its new secure microcontroller platform.

The new microcontroller offers faster processors, more memory, better interfacing and new security features, and like its predecessor professional customers will be able to integrate it into their products licence-free.

The firm also hinted at ‘other exciting product releases through the second half of 2024 and into 2025’.

Raspberry Pi’s IPO (initial public offering) was something of a coup for the London stock exchange, and the company’s faith has been rewarded with a loyal fan base of retail and institutional clients so, despite the recent upheaval in tech stocks, its shares are almost unchanged over the last fortnight.

The computer company’s success has encouraged more firms to take what is known as an ‘early look’ at floating – that is, sounding out institutions in advance to gauge the potential level of interest – which is good news as it is a fairly reliable lead indicator of potential IPO activity to come.

At the same time, Peel Hunt’s newly-launched ‘IPO speedometer’ suggests the UK market is ‘selectively open’ to new issues with conditions having improved slightly between July and August.

The key drivers of the model this month have been the successful re-opening of the IPO market with the floats of Raspberry Pi and Rosebank (ROSE) and the positive aftermarket performance of both stocks; continued mixed success of the European IPO recovery; a constructive broader UK capital markets backdrop; better UK investor sentiment; and improving overall fundamentals for the UK.

‘There was a notable shift in investor sentiment on the UK in recent months, helped by relative political stability and improving macro conditions. Although fund flows remain negative on a headline basis, they are decreasing significantly, and we are seeing more positive flows beneath the surface,’ say the analysts.

Despite the increase in market volatility this month, ‘We continue to maintain that the UK IPO market is ‘selectively open’ for either best-in-class issuers or certain niche thematics that resonate,’ adds the team.

‘We expect a small number of further UK IPOs in 2024 and a broader market re-opening in 2025, in line with the many issuer conversations we are having.’ 

Disclaimer: The author (Ian Conway) owns shares in Raspberry Pi.