Figma's $16.4 Billion IPO Challenges Adobe's Acquisition Plans

Adobe faces a new challenge as Figma pursues a $16.4 billion IPO. The graphic design platform is planning to raise $1.3 billion by selling 37 million shares, priced between $25 and $28 each. The IPO is expected to be listed on the NYSE under the ticker "FIG". This comes after Adobe's planned acquisition of Figma for $20 billion collapsed due to regulatory issues in Europe and the UK.

Adobe is facing a new challenge as Figma, the popular graphic design platform, prepares for its highly anticipated initial public offering (IPO). Figma is set to raise $1.3 billion by selling approximately 37 million shares, priced between $25 and $28 each. The IPO is scheduled to list on the New York Stock Exchange (NYSE) under the ticker "FIG" [1].

This IPO comes after Adobe's planned acquisition of Figma for $20 billion in 2022 was abandoned due to regulatory hurdles in Europe and the UK. Figma's IPO is expected to be a major milestone, injecting fresh momentum into the resurgent market for tech listings. The company's innovative cloud-based design software has gained significant traction, with a strong user base that includes 95% of the Fortune 500 and 78% of the Forbes Global 2000 [2].

Figma's IPO is notable for its auction-style approach, which aims to maximize demand and capture investor enthusiasm. By requesting limit orders rather than market orders, Figma seeks to understand the true demand for its shares, potentially avoiding the inflated perceptions of demand that often accompany traditional IPOs. This strategy was previously employed by companies like DoorDash and Airbnb during the pandemic [1].

The company plans to use the net proceeds from the offering, along with its existing cash reserves, to repay $330.5 million of outstanding indebtedness under the Revolving Credit Facility. The remaining net proceeds, if any, would be used for working capital and other general corporate purposes [1].

Figma's last-twelve-month (LTM) revenue totaled $821 million, representing a 46% year-over-year (YoY) increase. The company’s adjusted operating margin was at 18%. The platform's extensive use across various sectors and its significant growth in offerings, including features like Dev Mode for developers and AI-driven tools, have positioned Figma as a major player in the design software market [2].

The IPO is managed by Morgan Stanley, Goldman Sachs, Allen & Company, and JPMorgan, and is expected to be priced on July 30. The successful IPO could potentially value Figma at $16.4 billion fully diluted, which would be a significant achievement given the regulatory hurdles it faced in the past [1].

References:
[1] https://www.cnbc.com/2025/07/21/figma-ipo-software-value.html
[2] https://www.ainvest.com/news/figma-auction-style-ipo-aims-maximize-demand-raise-1-03-billion-2507/