Shares Poised to Open at Double the IPO Price
Figma Inc. is set to make a high-profile entrance to public markets after pricing its IPO at $33 per share and raising $1.2 billion. Market indications suggest that trading could begin between $65 and $70 per share, representing a gain of up to 112% over the IPO price. This follows strong investor demand, with the offering reportedly oversubscribed nearly 40 times.
The design software firm sold 12.47 million shares, while early backers like Index Ventures and Greylock Partners offloaded 24.46 million shares. Based on the offering, Figma’s initial market capitalization stands at $16.1 billion, with a fully diluted valuation of around $18.5 billion. Including CEO Dylan Field’s unvested stock, the figure edges past $19 billion — approaching the $20 billion valuation proposed in Adobe’s failed 2023 acquisition.
Strong Fundamentals and AI Integration Drive Enthusiasm
Figma posted $228 million in revenue and $44.9 million in net income in the first quarter of 2025. Its adjusted gross margin stands at a robust 92%, exceeding many of its software industry peers. Analysts highlight this profitability as a key advantage, giving the firm flexibility to invest in product innovation and global expansion.
The company’s rapid growth — including a 46% year-on-year increase in Q1 revenue — is fueled by the addition of AI-driven tools like Figma Make and Dev Mode. These features have broadened its appeal beyond designers to developers, product managers, and marketers. CEO Dylan Field says the integration of AI remains a top priority for enhancing user experience and functionality.
Market Momentum and Strategic Control
Figma’s public debut adds momentum to the broader IPO market, which has now surpassed $21 billion in new offerings this year, edging ahead of last year’s pace. The company used an auction-like process during the IPO, asking investors to specify both quantity and pricing, which likely contributed to the strong demand.
Post-offering, Dylan Field retains firm control of the company with 74.1% of voting rights through Class B shares. Field co-founded Figma in 2012 with Evan Wallace while at Brown University, later dropping out to accept a Thiel Fellowship. Their browser-based design platform has since replaced traditional file-sharing methods and gained a loyal user base.
Looking Ahead After Adobe Deal Collapse
After Adobe’s $20 billion bid to acquire Figma was dropped due to regulatory hurdles, the company shifted focus to independent growth. Adobe paid a $1 billion termination fee, and Figma capitalized on the momentum by pushing forward with its IPO.
Figma’s leadership sees the public market not as a distraction but as a platform for elevating the brand and expanding its influence. With three-month revenues strong and multiple AI initiatives in place, the company aims to deliver further value to its customers and shareholders in the years ahead.
