Figma shares indicated to open $100/$105 each, IPO price $33

Figma shares indicated to open $100/$105 each, IPO price $33

Figma Inc., the design and collaboration software company, has seen its shares indicated to open at $100 to $105 each following its initial public offering (IPO). The IPO, which took place on Tuesday, saw Figma raise $1.2 billion, with shares priced at $33 each. The company sold 12.47 million shares in the IPO, which was more than 40 times oversubscribed, indicating robust demand [1].

The IPO pricing gave Figma a market value of $16.1 billion, with a fully diluted value of roughly $18.5 billion, including employee stock options and restricted stock units. The company's profitability, highlighted by an adjusted gross margin around 92%, tracks above even its most well-established software peers, providing ample flexibility for investment in new products and markets [1].

Figma's IPO has lifted the volume of first-time share sales on US exchanges above last year's pace, with more than $21 billion worth of US first-time share sales in the year to date. The offering was led by Morgan Stanley, Goldman Sachs Group Inc., Allen & Co., and JPMorgan Chase & Co. [1].

The company's shares were ultimately more than 40 times oversubscribed, with more than half of the orders receiving no stock, indicating strong demand for Figma's IPO. The robust demand points to a strong open for the first sizable software offering in the US since SailPoint Inc.'s debut in February [1].

Figma is used to design web and mobile application interfaces and has expanded its suite of products to be more useful for software development and general workplace collaboration. The company has seen strong adoption by software developers, product managers, and marketers. Figma's use of AI technology, including the introduction of Figma Make, an AI-based product that lets users turn prompts into functional prototypes, is a key differentiator [1].

The IPO has given Figma a significant brand moment, allowing the company to center the importance of design and create tremendous value for its community, customers, and investors. CEO Dylan Field, who will continue to control the company with 74.1% of the votes after the IPO, has pledged to pursue M&A at scale and continue to push the company forward [1].

References:
[1] https://finance.yahoo.com/news/figma-indicated-112-above-ipo-152947660.html