Figma targets $16.4 billion valuation in IPO

Figma is targeting a fully-diluted valuation of up to $16.4 billion in its initial public offering, as the cloud-based design software firm prepares for a debut on the NYSE that could inject fresh momentum into a resurgent market for tech listings.

The San Francisco-based company, along with some investors, is eyeing proceeds of up to $1.03 billion by selling nearly 37 million shares priced between $25 and $28 each, it said on Monday.

The listing could be a major milestone for Figma, coming more than a year after its $20 billion sale to Adobe failed due to regulatory hurdles in Europe and the UK.

An equities rally and a bunch of strong debuts recently have helped remove the IPO market overhang. Figma is expected to start trading close on the heels of stablecoin giant Circle, which debuted with eye-popping gains last month and has continued surging since.

As a major technology player that appears supportive of bitcoin, Figma has already drawn attention on social media.

The company had around $70 million invested in Bitwise’s bitcoin exchange-traded fund as of March 31 and intends to allocate a further $30 million to bitcoin, its filing showed.

Figma expects to list under the symbol “FIG”. Morgan Stanley, Goldman Sachs, Allen & Co and J.P. Morgan are among the underwriters for the offering.

It was valued at $12.5 billion in a tender offer last year that allowed employees and early investors to cash out a portion of their stake.

‘Big swings’

Figma is a cloud-based design platform that allows users to collaboratively create and edit apps, websites and software interfaces.

Its customers include ServiceNow, Workday and SAP. Its revenue rose 46% in the first three months of 2025, while net income jumped three-fold.

“Figma’s product is its primary marketing engine. Its collaborative nature fosters viral, bottoms-up adoption, leading to a best-in-class sales efficiency,” said Tomasz Tunguz, founder of venture capital firm Theory Ventures.

The company has also signaled it may take “big swings” with M&A, with co-founder and CEO Dylan Field saying it is prepared to “make decisions that may not seem immediately rational.”

Still, the listing will take place at a time when the industry landscape is shifting. While Figma is sharpening its focus on AI, it has also warned that design tools driven by the technology could make some customers less reliant on its platform.

The company has noted that restrictive immigration policies could impact its ability to recruit talent, citing past adjustments to hiring practices due to changes in visa assessment frameworks.

A majority of its revenue in 2024 came from outside the United States, exposing it to potential demand softness if international clients tighten their purse strings in response to tariffs.

Renewed trade tensions could also add to the caution among IPO investors, risking further disruption.

Against this backdrop, investor attention remains firmly on companies with solid fundamentals and a clear path to profitability, said Leslie Marlow, a corporate attorney at Blank Rome.

—Niket Nishant, Reuters