Figma Aims for $18.8 Billion Valuation in Upcoming IPO

BENGALURU, India — Figma has raised its projected price range for its upcoming U.S. initial public offering (IPO) to between $30 and $32 per share, targeting a valuation of $18.8 billion. This adjustment signals a strong demand among investors for high-growth technology stocks.

The design software company plans to sell nearly 37 million shares, aiming for approximately $1.18 billion in total. Previously, Figma had set its price target between $25 and $28 per share.

The new valuation brings Figma closer to the $20 billion that Adobe was willing to pay when it announced plans to acquire the company before the deal fell through in December 2023, due to antitrust issues in Europe and the United Kingdom.

“Investors are responding to companies with credible AI exposure, and Figma has done a good job aligning itself with that theme,” said Kat Liu, vice president at IPO research firm IPOX.

This change in pricing reflects an increased comfort level among investors regarding trade uncertainties and their readiness to back preferred companies. Figma reported revenue of $228.2 million for the three months ending March 31, a 46% increase from the previous year. Its net income also saw a threefold increase to $44.9 million.

“We believe that Figma is the right company to lead the charge into the public markets given its strong fundamentals and dominant market share in the product management space,” analysts at D.A. Davidson stated. “We think Figma has a strong argument to remain a category leader.”

After a temporary slowdown due to recent tariffs, IPO activity has steadily increased. Analysts predict that this trend will continue as the summer lull ends, with strong demand managing to keep high-growth listings in the spotlight. Leading market voices, including Blackstone’s President Jon Gray, expressed optimism, stating, “The dealmaking pause is behind us.”

Figma’s IPO is scheduled to be priced on Wednesday and is expected to trade under the symbol “FIG” on the New York Stock Exchange the following day. Major financial institutions Morgan Stanley, Goldman Sachs, Allen & Company, and J.P. Morgan are acting as lead underwriters for the IPO.