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So what is the distinction between Raspberry Pi Trading and Raspberry Pi Foundation from an organisational/legal perspective?

Is Raspberry Pi Foundation an entity or sub-entity of Raspberry Pi Trading, or just an affiliated organisation where Ebon Upton has roles in both organisations?

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Other way round. Raspberry Pi Trading is a wholly-owned subsidiary of the Raspberry Pi Foundation.

Thanks, so why would Raspberry Pi Trading become a publicly tradeable company then?

Or would the Foundation then have to divest of its ownership of Raspberry Pi Trading once it is listed?

The Foundation doesn't have to sell all of it: they can issue publicly tradable shares but only sell some proportion of them. It depends how much money they want to raise.

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