Figma Sets IPO Price at $33, Surpassing Expectations

Key Highlights  

Figma set the price for its IPO at $33, which is $1 above the top end of its anticipated range.  

The offering generated $1.2 billion prior to Figma's debut on the New York Stock Exchange.  

Figma, a design software company that was set to be acquired by Adobe for $20 billion, saw the deal collapse in 2023 due to regulatory issues. Figma finalized its initial public offering on Wednesday at a share price of $33, exceeding initial expectations.  

The company's stock is set to trade on the New York Stock Exchange under the symbol "FIG" starting Thursday. The sale raised $1.2 billion, with most of the proceeds benefiting current shareholder

.Figma aims to capitalize on a public market that is slowly reopening for tech initial public offerings. Circle, known for issuing stablecoins, and CoreWeave, which provides artificial intelligence infrastructure, have experienced considerable growth since their introductions earlier this year. Other companies, including online banking platform Chime and health technology firms Hinge Health and Omada Health, have also emerged in this space.

The offering assigns a valuation of $19.3 billion to Figma. A proposed acquisition of the company by Adobe for $20 billion did not succeed in 2023 due to regulatory challenges, leading Adobe to pay Figma $1 billion in termination fees. CEO Dylan Field and Evan Wallace founded Figma in 2012. The company is based sco, with ad in San Francidditional offices located in France, Germany, Japan, Singapore, and the United Kingdom.s.

Figma noted in its revised prospectus that its sales for the quarter ending June 30 rose to a range of $247 million to $250 million, up from $177.2 million the previous year, marking a 40% increase based on the median figure. The company estimates its profit for the quarter to fall between an operational loss of up to $500,000 and an operating gain of $2.5 million. This contrasts with a loss of $894.3 million the prior year, largely due to expenses related to stock-based compensation.

For the quarter ending in March, revenue surged by 46% to $228.2 million, and net income increased threefold to $44.9 million.

Field remains the principal investor in the company, holding 56.6 million shares prior to the offering and having voting power over an additional 26.7 million shares.

Index Ventures is the biggest institutional investor, owning 65.9 million shares, which represents 17% of the shares available before the IPO. Greylock comes in second with a 16% stake, followed by Kleiner Perkins at 14%, and Sequoia Capital with 8.7%.