Dylan Field, co-founder and CEO of Figma, appears at the Bloomberg Technology Summit in San Francisco on May 9, 2024.
David Paul Morris | Bloomberg | Getty Images
Figma, the developer of design software that was supposed to get acquired by Adobe, priced its IPO on Wednesday at $33 per share, above its expected range.
The company’s stock will debut on the New York Stock Exchange under the ticker symbol “FIG” on Thursday. The offering raised $1.2 billion, with most of the proceeds going to existing stockholders.
Figma is aiming to take advantage of a public market that has slowly reopened for tech IPOs. Stablecoin issuer Circle and artificial intelligence infrastructure provider CoreWeave have soared since their debuts earlier this year, while other companies including online banking firm Chime, and health-tech companies Hinge Health and Omada Health have also made it to market.
The offering values Figma at $19.3 billion. The company had agreed to be acquired by Adobe for $20 billion, but that deal fell apart in 2023 following objections from regulators. Adobe paid Figma a $1 billion termination fee.
On Monday, Figma said its expected price range was $30 to $32 per share.
Figma was founded in 2012 by CEO Dylan Field and Evan Wallace. The company is based in San Francisco, with offices in France, Germany, Japan, Singapore and the U.K.
Figma said in its updated prospectus that revenue for the quarter ended June rose to between $247 million and $250 million from $177.2 million a year earlier, representing growth of 40% at the middle of the range. As far as profits, the expected range for the quarter goes from an operating loss of up to $500,000 to an operating profit of $2.5 million, Figma said. That compared to a loss of $894.3 million a year earlier, due mostly to costs related to stock-based compensation.
For the March quarter, revenue rose 46% to $228.2 million, and net income tripled to $44.9 million.
Field is the company’s biggest investor, with 56.6 million shares ahead of the offering, along with voting control over another 26.7 million shares. Index Ventures is the leading institutional stakeholder, with 65.9 million shares, or 17 % of shares outstanding before the IPO. Greylock is second at 16%, followed by Kleiner Perkins at 14% and Sequoia Capital at 8.7%.
All of the top investors are selling a portion of their stake in the IPO.
