Figma seeking $1B+ IPO that could value it at $16.4B – News

Graphic design software maker Figma Inc. hopes to achieve a valuation as high as $16.4 billion in its upcoming initial public offering.

The company disclosed the listing’s proposed financial terms today in conjunction with the launch of its IPO roadshow. An IPO roadshow is a series of investor meetings designed to raise interest in a soon-to-be-public business’ stock.

Figma’s listing will put about 37.1 million shares up for sale at a price of $25 to $28 apiece. The software maker will issue about a third of the stock, while the rest will be put on the market by a subset of its investors. The shares could fetch $1.03 billion on the top end of the range.

The banks underwriting the IPO will have the option to purchase up to 5.54 million additional shares in the weeks after the listing. Additionally, Figma’s board has authorized the company to issue “blockchain common stock.” The software maker stated in its IPO filing that it currently has no “specific plans” to issue tokenized shares.

The $16.4 billion market capitalization that Figma could achieve in the IPO would be a nearly $4 billion premium to its last private valuation. However, the sum is still lower than the $20 billion that Adobe Inc. offered for the software maker in 2022. The companies scrapped the proposed acquisition the following year after drawing antitrust scrutiny.

Founded in 2012, Figma offers graphic design applications that compete with Adobe’s Creative Cloud software suite. The company says that it has more than 13 million users, two thirds of whom are not professional designers. Its enterprise customer base includes 95% of the Fortune 500.

Figma’s flagship application, Figma Design, is used for tasks such as creating website interfaces. An interface has two components: graphics and code that makes those graphics clickable or interactive in other ways. Figma Design allows designers to craft interface graphics without editing code, which speeds up their work.

The platform owes its popularity partly to a real-time collaborative editing feature similar to what Google Docs offers. Additionally, Figma Design automates common design tasks such as resizing text.

In the first three months of 2025, the company’s revenue jumped 46% year-over-year to $228.2 million. Its net income more than tripled in the same time frame to $44.9 million.

One of the factors behind Figma’s growth is that it regularly launches new products to expand its addressable market. The company has introduced a half dozen new cloud services since 2021, including three this year. Those new tools speed up the creation of presentations, ads and website designs.

Dev Mode, a service that Figma introduced in 2023, has made a particularly significant contribution to its growth. The tool enables the developers involved in a software project to centrally access interface graphics created by designers. Figma says that Dev Mode customers account for about 30% of its monthly active users.

The company plans to list its shares on the New York Stock Exchange under the ticker symbol “FIG.” Chief Executive Officer Dylan Field has reportedly hinted that Figma could make acquisitions after going public.

Image: Figma