Figma IPO demand nears 40 times oversubscribed, says Bloomberg
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The news: Figma’s US initial public offering is approaching 40 times oversubscribed, Bloomberg reported citing unnamed sources familiar with the matter, as the design and collaboration software company heads for what could be the year’s most in-demand listing.
The numbers: The San Francisco-based firm and some of its investors are offering 36.9 million shares at a price range between USD30 and USD32 (($46.1 to $49.2) each, after increasing that range from USD25 to USD28.
The company is guiding prospective investors that the IPO is expected to price above that range, the Bloomberg sources said.
At the top of the new range, a listing would value Figma at as much as USD15.6 billion, or roughly USD18 billion on a fully diluted basis.
The order book will close Wednesday 30 July in New York (Thursday AEST).
The context: A price above the range or an early surge in trading could lift its valuation above the USD20 billion figure from a planned 2023 sale to Adobe that fell apart.
Figma has been positioning itself for a strong showing, structuring its IPO more like an auction than a traditional listing. Prospective investors have been asked to precisely state the number of shares they wish to buy and at what price, as opposed to typical IPOs where investors submit market orders, Bloomberg reported.
This setup, popular during the pandemic-era IPO boom, comes as IPOs on US exchanges work to regain momentum after April’s tariff-driven market slump.
Circle Internet Group’s USD1.2 billion IPO in June finished more than 20 times oversubscribed, with shares surging 168.5% in their first session and now trading more than 500% above the IPO price.
Figma’s listing is led by Morgan Stanley, Goldman Sachs, JPMorgan, and Allen & Co. The shares are expected to trade on the New York Stock Exchange under the symbol FIG.
The source: Bloomberg
