On Monday, Figma, the design software company published an update on its initial public offering (IPO). Figma said it is targeting a fully diluted valuation of up to $16.4 billion in its IPO, as it gets ready for a debut on the NYSE. The listing could see a bounce into a resurgent market for tech listings.
Figma along with some of the shareholders expects to sell about 37 million shares at $25 to $28 each, generating as much as $1 billion in proceeds.
Figma software IPO valuation
Led by co-founder Dylan Field, Figma IPO could have fully diluted valuation of $14.6 billion to $16.4 billion. The company is planning to sell 2.35 million shares, which could be worth as much as $65.8 million.
This IPO listing on NYSE could be a major milestone for Figma. This IPO for Figma comes after more than a year when it failed to sale to Adobe for $20 billion due to regulatory hurdles in Europe and the UK.
Figma’s valuation was at $12.5 billion in a tender offer last year that allowed employees and early investors to cash out a portion of their stake.
Tech IPOs in recent months
Since late 2021, number of tech companies listing on U.S. stock exchanges has significantly declined. Owing to the declining investor appetite for high-growth, loss-making firms waned amid rising inflation and recession fears.
An equities rally and a bunch of strong debuts recently have helped remove the IPO market overhang with CoreWeave going public in March, and Circle and Chime shares started trading in June.
Figma ticker
Figma filed to go public on July 1, announcing plans to trade on the New York Stock Exchange under the symbol “FIG.” Morgan Stanley, Goldman Sachs, Allen & Co and J.P. Morgan are among the underwriters for the offering.
Figma crypto investment
Figma is also supportive of Bitcoin generating great attention on social media.
As per the filling, Figma had around $70 million invested in Bitwise’s bitcoin exchange-traded fund as of March 31 and intends to allocate a further $30 million to bitcoin.
Figma Q2 result
Figma’s Q2 preliminary results showed $9.0 million to $12.0 million in operating income on $247 million to $250 million in revenue. That would imply year-over-year revenue growth of 39% at the low end and 41% at the high end. Growth in the first quarter exceeded 46%.
Figma’s future
A cloud-based platform Figma allows users to collaboratively create and edit apps, websites and software interfaces. Its customers include ServiceNow, Workday and SAP. According to Field, the company is prepared to “make decisions that may not seem immediately rational.”
A majority of its revenue in 2024 came from outside the US, exposing it to potential demand softness if international clients tighten their purse strings in response to tariffs.
