Figma IPO: Red-Hot Design Unicorn Set for $19B Debut as Demand Hits 40x Oversubscription

WATCH: Figma’s $1.2B IPO Could Ignite a Tech Comeback—Here’s Why It Matters

Figma, the collaborative design software company, is set to make its highly anticipated public debut on the New York Stock Exchange under the ticker FIG on Thursday, July 31, 2025. Known for its intuitive, cloud‑based design tools that have become staples for tech teams and enterprises worldwide, Figma’s IPO is shaping up to be one of the most in‑demand offerings of the year. The company raised its initial price range from $25–$28 to $30–$32 a share amid intense investor appetite, with the offering reportedly nearly 40 times oversubscribed. At the top of that range, Figma’s market capitalization could reach about $18.8 billion—just shy of the $20 billion Adobe once offered in a failed acquisition attempt.

IPO Mechanics

Figma and its existing shareholders are selling approximately 36.9 million shares, with the offering expected to raise around $1.2 billion. Of that total, about $400 million will go directly to Figma, while the rest will allow early backers and insiders to cash out some of their holdings. The underwriting syndicate is led by Morgan Stanley, Goldman Sachs, Allen & Co., and J.P. Morgan, alongside BofA Securities, Wells Fargo, RBC, and Nomura. The heavy oversubscription underscores extraordinary demand from institutional investors, suggesting the stock could see a strong debut once trading begins.

Use of Proceeds and Selling Shareholders

According to Figma’s prospectus, the company plans to use proceeds to fuel product innovation, expand internationally, and strengthen its technology stack—including AI‑powered features that improve collaboration and workflow efficiency. Some of the proceeds will also be used for general corporate purposes, including sales and marketing. Selling shareholders include a mix of venture investors and early employees, taking advantage of the company’s elevated valuation in a hot IPO market.

A Look at the Business

Founded in 2012, Figma disrupted the design software space by offering a browser‑based, real‑time collaboration tool that allowed teams to design, prototype, and iterate together seamlessly. Its platform now serves a vast user base that includes 95% of the Fortune 500. Figma’s subscription model, sold per seat on annual or monthly plans, caters to a broad spectrum of users—from independent freelancers to enterprise product teams. With offerings like its Genius loyalty program and expansion into alternative accommodations like connected workflows, Figma has positioned itself at the forefront of collaborative digital design.

Financially, Figma has demonstrated impressive momentum. The company generated $749 million in revenue in 2024, up 48% year‑over‑year, and $228.2 million in Q1 2025 alone—a 46% jump from the same quarter last year. Its net dollar retention rate was 132% in March 2025, reflecting its ability to grow revenue within existing accounts. Notably, Figma’s Q1 non‑GAAP operating margin stood at 18%, a sharp turnaround from 2024 when results were impacted by one‑time stock compensation events.

Adobe: The Rival That Almost Was

The IPO also marks a new chapter in Figma’s rivalry with Adobe. In 2022, Adobe agreed to acquire Figma for $20 billion in cash and stock, but the deal collapsed in late 2023 after regulators in Europe and the U.K. raised antitrust concerns. Adobe paid a $1 billion termination fee, and since then Figma has been charting its own course toward the public markets. Now, Adobe faces the prospect of a rejuvenated competitor trading on its own. As analysts like D.A. Davidson’s Gil Luria have noted, the market is likely large enough for Adobe, Figma, and Canva to thrive, driven by the “democratization of creative tools and the ramping demand for digital products.”

Analyst and Industry Perspective

Dean Quiambao, Technology Industry Leader for Armanino, underscored just how robust Figma’s numbers look heading into the IPO. “It’s gonna be huge. It’s gonna be huge. I think there’s a lot of excitement. It is over subscribed. And when you talk about the financials, these might be some of the best financials we’ve seen this year,” Quiambao said. He pointed to Figma’s exceptional combination of growth and profitability: “They have a growth rate and a margin rate that’s not just 40, it’s 63. They got a ton of cash, they got a ton of growing revenue, and they’ve got a ton of excitement in their customer base.”

On the long‑term outlook, Quiambao highlighted Figma’s massive customer runway. “Their customer base, if you look at it today, they have 95% of the Fortune 500, but only a small percentage of those are huge major customers. So they can actually grow so many of those accounts. That’s actually something that’s very exciting. They can grow internationally. That’s also very exciting.”

As for whether investors should worry about the typical IPO dip in the first weeks of trading, Quiambao emphasized the bigger picture: “The biggest goal is can we grow enterprise value over time? And if we can hit quarter after quarter after quarter, the results will grow and the enterprise value will grow. And that’s what we’re really talking about. It’s not just the day that you go public, but after.”

The Bigger IPO Landscape

Figma’s offering is part of a broader reopening of the IPO market, which has been fueled by strong debuts from companies like Circle, Chime, and CoreWeave earlier this year. Quiambao believes the timing is favorable: “The IPO window is open. And you know what? I think you’ll see more and more companies start to make the investments and start to go public.” He noted that institutional investors are sitting on “20 trillion in capital… looking for high growth tech forward public investments.”

Final Take

All eyes will be on Figma’s debut as one of the most anticipated IPOs of 2025. With financials that impress even seasoned industry observers, a massive oversubscription rate, and a proven growth story, Figma is positioned for a strong start. The real test, however, will be its ability to sustain growth in the face of fierce competition and macroeconomic uncertainty. As Quiambao put it: “I think they do. I think they do. I think they’re going to do really well. I think people want to invest in these companies that are going to shape our future.”