Figma IPO Surges 320% Over Initial Price in $1.2 Billion Market Rally

Figma Inc. is set to debut on the New York Stock Exchange with shares opening at a range of $105–$110 per share, significantly higher than the initial offering price of $33, reflecting a valuation of approximately $16.1 billion at the time of its IPO [1]. The company successfully raised $1.2 billion in one of the most closely watched U.S. initial public offerings of the year, with demand exceeding supply by over 40 times [2]. The strong investor appetite led to more than half of subscription requests being unmet, marking the first major software IPO in the U.S. since SailPoint Inc. in February [3].

The IPO’s price range was raised multiple times in the days leading up to the listing, with Figma initially setting a target of $30–$32 per share and later increasing it to $86–$87 [4]. Ultimately, the final pricing reflected a surge in market enthusiasm, with shares expected to open more than tripling the original IPO price [5]. The final valuation, when including employee stock options and restricted stock units, climbed to around $18.5 billion, and further increased to over $19 billion when accounting for founder Dylan Field’s unvested shares [1].

Figma, founded in 2012 by Dylan Field and Evan Wallace, has evolved from a design collaboration platform into a broader tool for web and mobile application development, recently launching AI-powered features such as Figma Make [6]. The company reported a 46% year-over-year revenue growth in the first quarter of 2024, despite a $732 million net loss for the year due to rising operational costs [1]. Field emphasized the need to continue pushing forward after the IPO, stating that the public markets offer an opportunity to create value for the company’s community and customers.

The company’s valuation at the time of the IPO significantly exceeded the $20 billion it was reported to have targeted in its 2023 acquisition attempt by Adobe Inc. [1]. Analysts have noted the success of the IPO is partly attributed to the auction-style subscription mechanism, allowing investors to specify both the number of shares and price limits [7]. This structure likely contributed to the strong demand and limited share allocation.

Figma faces increasing competition from AI-focused design platforms like Lovable and Bolt, prompting the company to accelerate its own AI integrations and explore potential M&A opportunities [6]. Field has indicated the company will pursue acquisitions that align with its culture and enhance its offerings. The IPO has also contributed to U.S. IPO proceeds exceeding $21 billion year-to-date, surpassing the $20.2 billion raised in the same period in 2024 [8].

Sources:

[1] https://coinmarketcap.com/community/articles/688beada41c6fa7a8337da20/

[2] https://www.capitalbrief.com/briefing/figma-shares-set-to-debut-at-over-triple-ipo-price-12d4297a-69a9-49b4-a508-57676925caac/

[3] https://mlq.ai/news/

[4] https://au.investing.com/news/company-news/lumen-q2-2025-presentation-att-deal-debt-reduction-highlight-strategic-shift-93CH-3954025

[5] https://ng.investing.com/news/company-news/weave-communications-q2-2025-slides-16-revenue-growth-ai-expansion-93CH-2037975

[6] https://www.reddit.com/r/investing/