Figma IPO: Valuation Hits $19.3 Billion

Figma's Highly Anticipated IPO

Figma is set to commence trading on the New York Stock Exchange this Thursday, marking one of the most eagerly awaited initial public offerings (IPOs) of 2025.

Reports confirmed by venture capitalists to both TechCrunch and Bloomberg indicate the IPO is oversubscribed by a factor of 40.

Understanding the Oversubscription

This substantial oversubscription signifies that the demand for Figma shares currently exceeds the available supply by a ratio of 40 to 1. Consequently, it’s not unexpected that the company has set the initial share price at $33, exceeding its earlier projections.

Previously, on Monday, Figma communicated an anticipated price range of $30 to $32 per share. This was an increase from a prior range of $25 to $28.

Financial Details of the Offering

At the final price of $33 per share, the offering is expected to generate $1.2 billion in capital. A significant portion of these funds will be distributed to current shareholders.

Approximately twice as many shares are being sold by existing stakeholders – including founder and CEO Dylan Field – compared to the number of shares offered directly by the company.

Valuation and Previous Acquisition Attempt

According to CNBC, Figma’s IPO price establishes a valuation of $19.3 billion. This figure is close to the $20 billion valuation that Adobe had proposed prior to the collapse of their acquisition agreement in 2023.

Regulatory concerns ultimately led to the termination of the proposed deal between Adobe and Figma.

Key Takeaways

• Figma’s IPO is highly sought after, with a 40x oversubscription rate.
• The initial share price has been set at $33, above previous estimates.
• The offering is projected to raise $1.2 billion, primarily benefiting existing shareholders.
• Figma is valued at $19.3 billion, mirroring a previous acquisition offer from Adobe.