Figma sees strong demand for its IPO, as it prices above the expected range

MW Figma sees strong demand for its IPO, as it prices above the expected range

By Mike Murphy and Steve Gelsi

Company's market cap tips the scales at more than $19 billion at the IPO pricing of $33, as Figma raised $411.7 million and selling shareholders cashed in on $807.3 million

Design-software company Figma Inc. priced its initial public offering at $33 a share, above what Wall Street was expecting, in a sign of strong investor demand.

That price for about 36.94 million shares topped the IPO's projected range of $30 to $32 a share, which had been raised earlier this week from an original range of $25 to $28. Trading on the New York Stock Exchange for the stock $(FIG)$ is expected to begin Thursday.

A total of $1.22 billion was raised, with the company selling 12.47 million shares to raise $411.7 million, and with selling shareholders selling 24.46 million shares to raise $807.3 million.

Figma stands out as a company offering "strong and consistent growth rate for a long time" due partly to its international presence and potential domestic expansion, said Derek Hernandez, an analyst at PitchBook Data covering software companies in private markets.

He said he wasn't surprised that the underwriters of the deal raised Figma's estimated price range, given the company's high profile as a private software company that had been eyeing an IPO for years before market conditions improved enough in 2025 to move ahead.

"I don't think we've seen a company as good as this for a while," Hernandez told MarketWatch. "It's a very unique opportunity. It would have gone public a while ago in another market."

Read more: Figma files for an IPO. What investors should know about the Adobe design rival.

Experts say Figma's IPO - assuming a positive debut - will likely persuade other private software companies to go public and help re-energize the market. That group could include AI customer-service provider Genesys Cloud Services Inc., graphic-design-software maker Canva Pty Ltd. and data-analytics company Databricks Inc.

"Investors have been starved of new entrants into public markets in recent years," DA Davidson analyst Gil Luria said in a Monday note. "With elongated timelines between capital raises and a liquidity event, these organizations have gotten fit."

Adobe Inc. $(ADBE)$ had tried to acquire rival Figma for about $20 billion, but called off a deal two years ago after facing regulatory scrutiny.

Hernandez said the $20 billion valuation by Adobe was like a "line in the sand" for Figma's IPO pricing, so he wasn't surprised when the price target for the IPO was raised on Monday.

At its IPO price of $33 a share, Figma has a market capitalization of $19.3 billion based on 585 million shares outstanding on a fully diluted basis, which includes unvested stock options.

With more than 1,600 employees and 13 million monthly active users, Figma is used by 95% of the Fortune 500 as of March, with more than half of its revenue from outside the U.S.

Dylan Field, co-founder and chief executive of the company, won a Thiel Fellowship to pursue entrepreneurial projects early in his career.

Field is selling 2.35 million shares in the IPO for proceeds of $77.6 million.

Mamoon Hamid, a board member at Figma and a managing member at venture-capital firm Kleiner Perkins, is selling up to 2.76 million shares valued at about $91 million.

Other principal shareholders of Figma include affiliates of Index Ventures, Greylock Partners and Sequoia Capital.

The IPO from Figma comes after several successful larger IPOs this year, including AI data-center specialist CoreWeave Inc. (CRWV), Circle Internet Group Inc. $(CRCL.UK)$, online brokerage eToro Group Ltd. (ETOR) and online banking-services company Chime Financial Inc. $(CHYM)$.

More: Ambiq's stock soars after IPO. Here's where the company sees its place in the AI boom.

-Mike Murphy -Steve Gelsi

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July 31, 2025 08:10 ET (12:10 GMT)

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