Figma shares more than tripled in their public market debut on Thursday, closing at $115.50 for a 250% gain.
Why it matters: The big opening pop is the latest indication that the tech IPO market has reopened following a multiyear lull that began in early 2022.
The details:
- Figma’s first trade at $85 valued the company at about $50 billion. The stock ended the day with a market cap of almost $68 billion.
- The company raised roughly $1.2 billion, split between the company’s sale of 12.47 million shares and existing shareholders’ sale of 24.46 million shares.
- Figma boasts more than 13 million monthly users, two-thirds of whom are not designers. As of March 31, more than 1,000 clients were paying Figma upward of $100,000 annually.
- In its filing for the second quarter, Figma reported $9 million to $12 million in operating income on $247 million to $250 million in revenue, with sales growing about 40% year over year.
Figma, led by 33-year-old CEO Dylan Field, makes web-based software that allows people to collaborate on slide decks, digital whiteboards, and designs for apps and websites.
What they’re saying:
- “I think given that Figma did so well with their pricing last night, and there is so much demand that has persisted still in the order book this morning for this company, I think this will open the floodgates,” said Lynn Martin, president of the NYSE.
- “The moments of the past kind of flash through your brain, how you got here, but also just excitement about the future is so palpable,” said Dylan Field, Figma co-founder and CEO. “We have so much ahead to build.”
The background: Adobe agreed to buy Figma for $20 billion in 2022 but abandoned the acquisition in 2023 after U.K. regulators said the deal could harm design software innovation.
The bottomline: The IPO instantly turned Field into the latest tech billionaire, with his stake in Figma worth more than $6.3 billion.
