Figma shares set to debut at over triple IPO price
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The news: Figma is poised to open trading at USD105 to USD110 per share, more than triple its IPO price of USD33, and implying a valuation of nearly USD59 billion, according to indicators from market makers cited by Bloomberg.
The design software company and some of its backers raised USD1.2 billion in the offering, which was more than 40 times oversubscribed.
It was one of the year’s most anticipated US initial public offerings, with the pricing giving FIGMA a market value of USD19 billion on a fully diluted basis. It will now be the hottest debut.
The context: The debut comes after an abandoned USD20 billion buyout deal with Adobe in 2023, and is a powerful signal for the broader venture-backed software sector after a prolonged tech IPO drought.
Its success is expected to deliver more wealth to more Silicon Valley firms than any offering since 2021, according to The Information data. For CEO Dylan Field, the public debut marks a comeback after the collapsed Adobe acquisition, reinforcing his position as a major figure in the industry.
While investor demand was strong, The Information notes that Figma now faces pressure to prove it can sustain growth as a standalone public company amid rising competition and high costs tied to AI integration.
The numbers: Figma sold 12.47 million shares, and investors including Index Ventures, Greylock Partners and Kleiner Perkins sold 24.46 million, according to its filings. CEO Dylan Field retains 74.1% of the voting power.
The company reported USD228 million in revenue and USD44.9 million net income for the March quarter, but a USD732 million loss for 2024.
The sources: Bloomberg, The Information
