Boosted Price Range Signals Strong Demand for Tech IPOs
Figma has raised its expected IPO price range ahead of its stock market debut, now targeting a valuation of $18.8 billion. The design platform plans to raise $1.18 billion by offering nearly 37 million shares at $30 to $32 each. This move marks a notable increase from the earlier range of $25 to $28, signaling rising investor interest in high-growth tech stocks despite trade-related uncertainty.
The new valuation places Figma closer to the $20 billion price tag it once commanded in a now-defunct acquisition deal with Adobe. That deal was scrapped in late 2023 after facing intense antitrust scrutiny in both the UK and the European Union.
AI Alignment and Strong Fundamentals Fuel Market Optimism
Analysts credit Figma’s successful integration of artificial intelligence features and its strong market position as key factors behind investor enthusiasm. “Investors are responding to companies with credible AI exposure,” said Kat Liu of IPOX. D.A. Davidson analysts echoed this sentiment, stating that Figma’s fundamentals and dominant market share in product design make it a standout candidate for a public offering.
Figma reported $228.2 million in revenue for the quarter ending March 31, a 46% year-over-year increase. Net income surged to $44.9 million, more than tripling over the same period. These results support its positioning as a category leader in collaborative design software.
IPO Market Recovery Gains Traction Post-Tariff Shock
Figma’s decision comes as the IPO market shows signs of recovery following a sharp slowdown triggered by new U.S. tariffs announced in April. Activity has since rebounded, with several tech firms lining up for listings in the fall. Bankers are optimistic that the pace will pick up once summer ends, with investors showing renewed interest in growth-driven opportunities.
Supporting this optimism, Blackstone’s President Jon Gray recently stated that “the dealmaking pause is behind us,” suggesting a broader market rebound is underway.
Public Debut Expected This Week on NYSE
The company is scheduled to price its IPO on Wednesday and begin trading on the New York Stock Exchange under the ticker symbol “FIG” the following day. Lead underwriters for the offering include Morgan Stanley, Goldman Sachs, Allen & Company, and J.P. Morgan.
Figma’s public debut is being closely watched as a bellwether for upcoming tech IPOs and could set the tone for post-summer listing momentum, particularly among firms capitalizing on AI-driven innovation.