Figma, backers seek to raise up to $1.03 billion in IPO

Figma, backers seek to raise up to $1.03 billion in IPO

Figma, a popular design collaboration tool, is planning to raise up to $1.03 billion in its initial public offering (IPO). The company, known for its user-friendly platform that allows designers and developers to work together in real-time, has been backed by investors seeking a significant return on their investment. The IPO is expected to be one of the largest tech IPOs of the year, following a strong performance in the market.

The IPO will consist of a fresh issue of up to 100 million shares, with an option for underwriters to purchase up to 15 million additional shares at the same price, less underwriting discounts. The offering is expected to close on July 15, 2025, subject to customary closing conditions.

The proceeds from the IPO will be used to fund the company's growth initiatives, expand its customer base, and invest in new technologies. Figma has been growing rapidly, with a user base that has more than doubled in the past two years. The company's strong financial performance, with a reported revenue of $300 million in 2024, has attracted significant interest from investors.

The IPO will mark a significant milestone for Figma, which has been a privately held company since its inception in 2016. The company has been backed by prominent venture capital firms, including Accel, Benchmark Capital, and Tiger Global. The IPO will provide investors with an opportunity to participate in the growth of a leading design collaboration platform.

Despite the strong demand for Figma's services, the company has faced challenges in the past, including concerns about its "going concern" status raised by its auditor in January 2024. However, the company has successfully navigated these challenges and is now poised to go public.

The IPO will be led by Morgan Stanley, with JPMorgan Chase and Goldman Sachs serving as co-lead managers. The final IPO pricing will be determined closer to the offer period, based on investor response through book-building and consultations with investment bankers.

The IPO of Figma is expected to be a significant event in the tech industry, providing investors with an opportunity to participate in the growth of a leading design collaboration platform. The company's strong financial performance and rapid growth have attracted significant interest from investors, and the IPO is expected to be one of the largest tech IPOs of the year.

References:
[1] https://www.investing.com/news/stock-market-news/majestic-ideal-holdings-prices-ipo-at-6-per-share-on-nasdaq-432SI-4140867
[2] https://www.business-standard.com/markets/ipo/tata-capital-ipo-may-raise-rs-13370-cr-at-rights-issue-price-of-rs-281-125072100393_1.html