Figma (FIG) opens today, July 31, its first day of trading on the New York Stock Exchange at $33 per share, landing above its initial price range after strong investor interest, culminating in 30x oversubscription for the IPO, which pushed the offering higher. That starting price gives the design software company a fully diluted market capitalization of nearly $19.5 billion. In total, Figma raised $1.2 billion by selling 36.9 million shares. About $400 million will go to the company, while the rest allows early backers and employees to take some gains off the table.
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What Figma Does
Founded in 2012, Figma is known for its browser-based design and prototyping platform. The software allows teams to create and edit user interfaces in real time. Its cloud-native approach makes it a popular choice among product teams and developers. Customers use it to build and test layouts for apps, websites, and digital tools. The company sells subscriptions to individuals, small firms, and large enterprises, and it reports over 13 million monthly active users.
Figma counts 95% of the Fortune 500 among its customers and has grown its presence in the enterprise market. In 2024, it generated $749 million in revenue, marking a 48% year-over-year increase.
Figma’s History with Adobe
The listing comes less than two years after Adobe’s $20 billion acquisition of Figma collapsed due to regulatory concerns. That failed deal left Figma with a $1 billion breakup fee, which strengthened its balance sheet ahead of the offering. Now trading on its own, the company enters a competitive space that includes Adobe (ADBE), Canva, and other emerging design platforms. Figma aims to set itself apart with AI features and an open ecosystem designed to support collaboration across workflows.
Bullish Outlook
Wall Street analysts see Figma as a high-growth SaaS firm with strong gross margins and retention rates. The IPO was oversubscribed by more than 30 times, highlighting significant institutional interest. Some caution around valuation remains, as Figma trades at a premium to peers based on revenue multiples. Still, analysts point to its product stickiness and enterprise growth as key strengths. Many expect the stock to benefit from long-term demand for cloud-based creative tools.