Key Points
- Figma is targeting a valuation of up to $16.4 billion in its IPO.
- The move comes after the company’s planned $20 billion sale to Adobe was blocked by regulators.
- Figma plans to sell shares for $25 to $28 each, raising $1.03 billion. The company has invested in a Bitcoin ETF and plans to increase its holdings.
- While revenue and profit are growing rapidly, the company faces risks from AI and global trade tensions.
Design software company Figma is aiming for a valuation of up to $16.4 billion in its upcoming initial public offering (IPO). The company plans to list on the New York Stock Exchange. This major move comes more than a year after its $20 billion sale to Adobe fell through due to regulatory challenges.
In a new filing, the San Francisco-based company stated that it plans to sell approximately 37 million shares at a price between $25 and $28 per share. This could raise to $1.03 billion for the company and some of its early investors.
Figma’s debut comes as the market for tech IPOs is heating up again, following several other successful listings. The company has also grabbed attention for its investments in Bitcoin. Its filings show it holds about $70 million in a Bitcoin ETF and plans to buy another $30 million, a move that has generated buzz on social media.
Figma is a popular cloud-based design platform that enables teams to collaborate on creating websites, apps, and other software interfaces. The company is experiencing rapid growth, with its revenue increasing by 46% and its net income tripling in the first quarter of the year.
Despite its success, Figma faces some challenges. The company has warned that the rise of AI could make some customers less reliant on its products and services. It also faces potential risks from restrictive immigration policies and renewed global trade tensions, which could affect its large international customer base.
