Figma IPO and stock reaction: All you need to know
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Figma has become the latest major tech company to go public. On its first day of trading on the New York Stock Exchange , the stock surged 250%.The design software company and some of its existing investors sold 36.9 million shares at $33 each, beating the expected price range of $30-32. The price range had been raised from $25 to $28 earlier in the week due to strong demand.This IPO comes more than a year after Figma's planned $20 billion acquisition by Adobe was blocked by regulators, who said the deal could reduce competition in the market.Now trading under the ticker 'FIG', Figma's shares closed at $115.50 on Thursday (US time), giving it a market valuation of $67.7 billion. This is more than three times what Adobe had offered.On the Adobe deal, Danny Rimer, partner at Index Ventures and a member of Figma's board, wrote in a blog post: 'The world got to know Figma on a whole new level in 2022, when Adobe announced plans to acquire the company for $20 billion. That moment came with intense pressure and a spotlight few founders ever face.''Dylan remained his usual grounded, transparent self,' he wrote. Dylan Field is Figma's CEO and cofounder, and now holds a stake valued at over $6 billion.'When the deal fell through a year later, he didn't flinch. He turned the page and got right back to building,' Rimer added.The public offering brought in $1.2 billion, though two-thirds will go to existing investors. Most of their shares are now subject to a lock-up period of 180 days, meaning all of the current value is just on paper, and the big stock sales can't happen until January.In the quarter that ended in March, Figma's revenue rose by 46% to $228.2 million, while net income tripled to $44.9 million, according to a report by CNBC.Figma is best known for its cloud-based platform, which allows teams to collaborate on interface designs in real time, much like using Google Docs. But it has since expanded its services beyond design to include tools for website creation, AI programming, branded marketing, and digital illustration.Founded in 2012 by Field and Evan Wallace, Figma has major global brands, including Netflix, Duolingo, Mercado Libre, Stripe, ServiceNow, and Pentagram Design, as its customers.Top Indian companies such as Zomato Swiggy , Cred, and Groww also use the platform. Last November, Field told ET that the company is very interested in expanding its presence in India. He said around 85% of Figma's weekly active users are based outside the US, with a significant portion in India.'There is a real revenue opportunity in India. It is a myth that you cannot monetise India,' Field had said. He added that the more time Figma spends in India, the better it will be at improving its services for the country's users.
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