Figma Stock Surges 250% on IPO Day, Valuation Soars to $61.5 Billion

Figma Inc's stock surged 250% on its first day on Wall Street, with a market value of $61.5 billion. The shares offered in the IPO were oversubscribed by more than 40 times, and the company's largest VC backer, Index Ventures, saw its stake in Figma worth $7.23 billion. Other big-name investors, such as Kleiner Perkins and Sequoia Capital, also reaped multibillion-dollar gains. The IPO is seen as a potential catalyst for other startups after a three-year freeze in the tech listings market.

Figma Inc.'s stock surged 250% on its first day on Wall Street, marking the largest first-day increase for a U.S.-traded company exceeding $1 billion in three decades. The company's stock, which traded at $115.50 each, more than tripled the IPO price of $33 per share [1]. This remarkable performance gave Figma a market value of $61.5 billion, surpassing the $20 billion valuation it would have fetched in a now-scrapped merger with Adobe Inc.

The shares offered in Figma's IPO were oversubscribed by more than 40 times, with more than half of the orders receiving no stock. This high demand for Figma's shares was driven by investor enthusiasm for the company's focus on AI and its potential to be a central player in the AI ecosystem [2]. The company's largest venture capital backer, Index Ventures, saw its stake in Figma worth $7.23 billion by the end of the first trading day, while other big-name investors like Kleiner Perkins and Sequoia Capital also reaped multibillion-dollar gains.

Figma's IPO is being seen as a potential catalyst for other startups after a three-year freeze in the tech listings market. The company's strong first-day performance and the significant gains for its investors are likely to encourage other tech companies to consider going public. Figma's focus on AI and its rapid growth in revenue and user base have made it an attractive investment opportunity for Wall Street.

References:
[1] https://finance.yahoo.com/news/figma-indicated-112-above-ipo-152947660.html
[2] https://economictimes.indiatimes.com/markets/stocks/news/listing-or-blitzing-figma-stock-soars-250-higher-on-day-1-on-wall-street/articleshow/123055420.cms