Figma Targets $16.4B Valuation in NYSE IPO, Aims to Boost Tech IPO Market

As it prepares for an IPO on the New York Stock Exchange, Figma is looking for a fully diluted valuation of up to $16.4 billion, a move that could boost the tech IPO market, which is currently recovering, according to a Reuters story.

According to a statement made on July 21, the San Francisco-based design software company and some of its investors intend to raise up to $1.03 billion by offering almost 37 million shares at a price of $25 to $28 each.

More than a year after Adobe's $20 billion proposed acquisition of Figma was thwarted owing to regulatory issues in the UK and Europe, this IPO represents a significant milestone for the company.

Figma’s IPO Details and Valuation Strategy

The recent recovery of the overall market and the success of initial public offerings (IPOs) such as Circle's have rekindled interest in tech listings. Figma's pro-Bitcoin position and social media buzz have already generated interest in the company's impending debut. According to its filing, as of March 31, it had invested $70 million in Bitwise's bitcoin ETF and intended to spend an additional $30 million.

The sale will be managed by Morgan Stanley, Goldman Sachs, Allen & Co., and J.P. Morgan, and the business will list under the ticker symbol "FIG." The latest secondary share sale of Figma, which involved early investors and staff, brought the company's worth down to $12.5 billion in 2024.

Figma’s Growth Metrics and Financials

With clients including SAP, Workday, and ServiceNow, Figma provides a collaborative design platform for creating websites, apps, and user interfaces. In the first quarter of 2025, the company's revenue increased by 46%, while its net income tripled.

The collaborative elements of Figma encourage viral user adoption and sales efficiency, according to venture financier Tomasz Tunguz, who commended the company's product-led growth model. Dylan Field, the CEO, has also indicated that the business is open to making daring purchases that might not seem like the norm at first.

Challenges Figma Faces Post-IPO

The IPO does, however, coincide with shifting market conditions. Figma recognises that AI-powered design tools may lessen reliance on customers, even as it makes investments in AI.

Additionally, the business cited stringent immigration laws as a barrier to employment and cautioned about the risks to global demand associated with tariffs and economic uncertainties. According to corporate lawyer Leslie Marlow, investors are giving preference to companies with solid financials and obvious routes to success in this changing climate.