Figma Engages Morgan Stanley for $125 Billion IPO

Figma Inc., a leading design software company, has reportedly engaged Morgan Stanley to lead its initial public offering (IPO) on the U.S. stock market. This move is expected to be one of the largest IPOs of the year. In addition to Morgan Stanley, Figma has also invited Goldman Sachs and Allen & Co. to participate in the IPO process. The company's valuation was previously reported to have reached $125 billion, with significant investments from firms such as Coatue Management, Alkeon Capital Management, and General Catalyst Partners. Other notable investors in Figma include Index Ventures and Kleiner Perkins.

Figma, known for its application design and collaboration software, had previously agreed to be acquired by Adobe for $200 billion in 2022. However, after more than a year of regulatory review, the deal was ultimately canceled. This decision to pursue an IPO instead of an acquisition reflects Figma's strategic shift towards maintaining its independence and continuing to innovate in the design software market.

Recently, Figma unveiled a series of new products at its Config conference in San Francisco, including features related to artificial intelligence. These new tools, such as coding assistants for designers, are aimed at enhancing the capabilities of design professionals. The company's client base includes major tech giants such as Microsoft and Amazon, further solidifying its position in the industry.

Figma's journey to an IPO has been marked by significant milestones. The company has raised over $3 billion in funding since its inception in 2013, with major investors including Sequoia Capital and Greylock Partners. The decision to go public is expected to provide Figma with the necessary capital to further innovate and compete in the rapidly evolving tech landscape. The IPO is anticipated to bring a much-needed boost to the IPO market, which has seen relatively modest activity this year. Despite earlier predictions of a surge in IPOs, the market has only raised approximately $190 billion so far, a modest 11% increase compared to the same period last year. Only three IPOs have exceeded $10 billion in size, highlighting the need for significant deals to revitalize the market.