Figma prices IPO at $33, above expected range

Figma, renowned for its innovative design software, has successfully priced its initial public offering (IPO) at $33 per share, surpassing initial projections. The company's shares are set to begin trading on the New York Stock Exchange under the ticker symbol "FIG" this Thursday. The IPO raised an impressive $1.2 billion, primarily benefiting existing shareholders. Figma is strategically entering a public market that is gradually reopening for technology IPOs, following the successful launches of companies like Circle and CoreWeave earlier this year. Other notable entrants include Chime and health-tech firms Hinge Health and Omada Health. Valued at approximately $19.3 billion, Figma was previously slated for acquisition by Adobe for $20 billion, a deal that ultimately fell through in 2023 due to regulatory pushback, leading to Adobe paying a $1 billion termination fee to Figma. Initially, Figma anticipated a price range of $30 to $32 per share prior to the IPO. Founded in 2012 by CEO Dylan Field and Evan Wallace, the company operates from its headquarters in San Francisco, with additional offices across France, Germany, Japan, Singapore, and the U.K. In its updated prospectus, Figma reported a significant increase in revenue for the quarter ending in June, estimating between $247 million and $250 million, up from $177.2 million in the same quarter last year—a remarkable growth of 40%. On the profitability front, the company expects to report an operating loss of up to $500,000 to an operating profit of $2.5 million for the quarter, a stark contrast to a loss of $894.3 million the previous year, largely due to stock-based compensation expenses. For the March quarter, Figma's revenue surged by 46% to $228.2 million, while net income tripled to $44.9 million. CEO Dylan Field stands as the largest individual investor, holding 56.6 million shares prior to the offering, along with voting control over an additional 26.7 million shares. Index Ventures leads institutional investors with a stake of 65.9 million shares, representing 17% of the total shares before the IPO, followed by Greylock and Kleiner Perkins at 16% and 14%, respectively, and Sequoia Capital holding 8.7%. Notably, all major investors are set to sell portions of their stakes during the IPO.