Figma, a cloud-based design software company, is targeting a valuation of up to $16.4 billion in its upcoming initial public offering (IPO) on the New York Stock Exchange (NYSE). The San Francisco-based company and some of its investors plan to raise as much as $1.03 billion by offering nearly 37 million shares, priced between $25 and $28 each. The company plans to list its Class A shares on the NYSE under the ticker symbol "FIG".
This IPO is a significant move for Figma, especially after its proposed acquisition by Adobe for $20 billion was blocked in 2023 due to regulatory concerns. The failed acquisition resulted in Adobe paying Figma a $1 billion breakup fee. Now, Figma is pursuing public funding to support its global expansion and innovation efforts.
Figma's IPO is occurring amid a broader rebound in the tech IPO market. Improved economic conditions, stabilizing inflation, and a more predictable regulatory environment have boosted investor confidence. Global IPO activity in 2025 has already raised $61.4 billion, a 17% increase compared to the same period last year. Several other tech companies, including CoreWeave, BitGo, and Avalara, have also recently filed for IPOs.
Figma offers a collaborative design platform used for building websites, applications, and user interfaces. Its clients include major enterprises like SAP, Workday, and ServiceNow. Figma has demonstrated strong financial performance, with a 46% increase in revenue and a threefold jump in net income in the first quarter of 2025. For the year ending March 31, 2025, Figma reported $821 million in revenue. In Q1 2025, the company's revenue was $228.2 million with a net income of $44.9 million.
A notable aspect of Figma's IPO is its investment in cryptocurrency. As of March 31, the company had $70 million invested in Bitwise's bitcoin ETF and plans to invest an additional $30 million. This move has generated attention on social media and signals a forward-looking approach to treasury management.
However, Figma acknowledges that AI-powered design tools could reduce customer dependence on its platform. The company is also investing in AI. Despite being based in the U.S., the majority of Figma's 2024 revenue came from international markets. The company cautions that economic uncertainty abroad, particularly tariff-related, could soften demand.
After the IPO, Figma CEO Dylan Field will hold or have the ability to control around 73.6% of the voting power of the company's outstanding capital stock. Figma intends to use the net proceeds from the IPO to repay a $330.5 million outstanding debt under a revolving credit facility and for working capital and other general corporate purposes. Figma will not receive any proceeds from the sale of Class A common stock by the selling stockholders.
