Figma IPO Raises $1.2B, Spurs Tech IPO Hopes

Figma, a San Francisco-based collaborative design software firm, debuted on the New York Stock Exchange with its IPO priced at $33 per share, raising $1.2 billion and valuing the company at around $19.3 billion. The IPO follows Adobe's failed $20 billion acquisition in 2023, which ended with Figma receiving a $1 billion termination fee due to regulatory issues. Investor enthusiasm was high, with shares indicated to open at $65–$70, more than doubling the IPO price. Figma's strong revenue growth, profitability, and integration of AI have positioned it as a key player in the tech sector. CEO Dylan Field retains significant control through Class B shares, and his compensation plan could make him a major billionaire. The high-profile IPO is expected to encourage other tech firms like Canva, Databricks, and Genesys to consider public offerings.