Figma IPO Surges 250% to $68 Billion Valuation on NYSE Debut

Figma's shares tripled in their NYSE debut, valuing the design software company at nearly $68 billion. The IPO priced at $33 a share, raising $1.2 billion, with most proceeds going to existing shareholders. Revenue for Q2 was $247-$250 million, up 40% YoY, with operating income between $9-$12 million. The company has over 13 million monthly users, two-thirds of whom are non-professional designers.

Figma, the design software company, saw its stock triple in its New York Stock Exchange debut, valuing the company at nearly $68 billion. The initial public offering (IPO) priced at $33 a share, raising $1.2 billion, with most proceeds going to existing shareholders [1].

The company's stock, trading under the ticker symbol FIG, opened at $85 and reached as high as $112 before closing at $115.50, representing a 250% gain from its listing price [2]. This significant increase marks the largest first-day pop in at least three decades for a US-traded company raising more than $1 billion [3].

Figma reported Q2 revenue of $247-$250 million, up 40% year over year (YoY), with operating income between $9-$12 million. The company has over 13 million monthly users, with two-thirds of them being non-professional designers [1].

The IPO comes after a multiyear lull in the tech IPO market, which began in early 2022 due to inflation and rising interest rates. Figma's successful debut is seen as a sign that the market has reopened [1]. Other notable tech IPOs this year include Chime, Circle, CoreWeave, Hinge Health, and Omada Health [1].

Figma's CEO, Dylan Field, emphasized the importance of staying focused and mission-driven despite the market's fluctuations. Field's stake in the company is now worth over $6 billion based on Thursday's closing price [1].

The company's growth is driven by its expanding user base and the adoption of its tools by various industries, including software development, product management, and marketing. Figma's suite of tools, which include web-based software for collaborative design, has seen strong adoption by major companies like Google, Microsoft, Netflix, and Uber [1].

The IPO has also lifted the volume of first-time share sales on US exchanges, with more than $21 billion worth of US first-time share sales in the year to date [3]. Demand for Figma's IPO was helped by an order-taking process similar to an auction, where prospective investors stated the number of shares they wished to buy and at what price [3].

References:
[1] https://www.nbcnews.com/tech/tech-news/design-software-company-figma-triples-share-price-nyse-debut-rcna222433
[2] https://www.investors.com/news/technology/figma-stock-fig-design-software-company-ipo/
[3] https://finance.yahoo.com/news/figma-indicated-112-above-ipo-152947660.html