Figma aims at $16.4 billion valuation ahead of IPO on NYSE
The San Francisco-based design software company, together with some of its investors, plans to raise as much as $1.03 billion by offering nearly 37 million shares priced between $25 and $28 each, according to a statement released Monday.
This IPO marks a key moment for Figma, coming more than a year after its $20 billion proposed acquisition by Adobe was blocked due to regulatory concerns in the UK and Europe.
The broader market's recent rebound and successful IPOs like that of Circle have renewed optimism around tech listings. Figma's upcoming debut has already drawn attention, partly due to its pro-bitcoin stance and social media buzz. As of March 31, it had $70 million invested in Bitwise's bitcoin ETF and plans to invest an additional $30 million, its filing shows.
The company will list under the ticker symbol "FIG", with Morgan Stanley, Goldman Sachs, Allen & Co., and J.P. Morgan managing the offering. Figma was last valued at $12.5 billion in a 2024 secondary share sale involving early investors and employees.
Figma offers a collaborative design platform used to build websites, applications, and user interfaces, with clients including SAP, Workday, and ServiceNow. The company saw a 46% increase in revenue and a threefold jump in net income in Q1 2025.
Venture capitalist Tomasz Tunguz praised Figma's product-led growth model, noting that its collaborative features promote viral user adoption and sales efficiency. CEO Dylan Field has also suggested the company is open to bold acquisitions that may seem unconventional at first glance.
However, the IPO comes amid changing industry dynamics. While Figma is investing in AI, it acknowledges that AI-powered design tools could reduce customer dependence. The company also pointed to restrictive immigration policies as a hiring challenge and warned of potential global demand risks tied to tariffs and economic uncertainty.
Corporate attorney Leslie Marlow noted that in this evolving environment, investors are prioritizing firms with strong financials and clear paths to profitability.
(With inputs from Reuters)
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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