Product design platform Figma has floated on the New York Stock Exchange, where its shares reached $115.50 by the end of the day — three times the initial offering price of $33. This brings Figma’s market capitalization to $67.7 billion.
Product design platform Figma has floated on the New York Stock Exchange, where its shares reached $115.50 by the end of the day — three times the initial offering price of $33. This brings Figma’s market capitalization to $67.7 billion.
That’s three times more than the amount Figma almost sold to Adobe for about three years ago, when a nearly completed $20 billion deal fell through due to regulatory pressure, the NYT reminds.
Figma’s stock jumped 250% on its first day of listing, far exceeding the average percentage growth that companies and their underwriters typically expect.
«You have moments of the past flashing through your mind, of how you got here, but there’s also excitement about the future,» said Dylan Field, Figma’s co-founder and CEO. The IPO turned Field, 33, into a new tech billionaire, with his stake in Figma valued at more than $6.3 billion.
Figma’s success is «a very positive sign» for other startups that may go public, said Nick Einhorn, director of research at Renaissance Capital, which tracks IPOs. He added that for investors, «it’s definitely encouraging».
Figma was founded in 2012 by Field and Evan Wallace, who met while studying computer science at Brown University. The company develops online software that allows designers, developers, and other professionals to create websites and apps. Users can use the Figma platform to collaborate on a project in real time, similar to how you can work together on documents in Google Docs.
In 2022, Adobe announced its intention to acquire Figma, which worried users of the service. In December 2023, the companies jointly announced the mutual termination of the merger agreement, under which Adobe was to pay the product design platform Figma $20 billion. Adobe’s compensation to Figma amounted to $1 billion.
It later became known that the breakdown of the Adobe-Figma merger agreement saved the software company about $6 billion, which it used to accelerate the development of artificial intelligence and buyback shares.
