The collaborative design software start-up Figma is eyeing a valuation of $13.6 billion on its market debut; however, experts predict that its valuation could stretch up to $16 billion including restricted stock units and options.
What Happened: The firm seeks to raise approximately $1.03 billion through its initial public offering, which could value it at $13.6 billion by selling nearly 37 million shares priced between $25 and $28 each.
This announcement comes as the company stated on its website on Monday that the proposed offering consists of 12,472,657 shares of Class A common stock being offered by Figma and 24,646,423 shares of Class A common stock being offered by certain of Figma's existing stockholders.
While this approximately comes up to 37 million shares, Bloomberg’s equities capital markets reporter Anthony Hughes said that “I think it’s interesting because once you add in restricted stock units and options, you know, equivalent of options, and they’re like, the evaluation will be a bit higher than, more like $16 billion, $16.5 billion.”
According to him, the deal is going to be priced next week, on Wednesday, July 30.
The company is known for its collaborative browser-based tools, which are used by major clients such as Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Salesforce Inc. (NYSE:CRM).
As of March 31, the company had invested approximately $70 million in Bitwise Bitcoin ETF (NYSE:BITB) and plans to invest an additional $30 million in Bitcoin (CRYPTO: BTC), according to its filing.
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Why It Matters: This valuation of approximately $16 billion is a step down from the $20 billion valuation Figma would have achieved in its proposed sale to Adobe Inc. (NASDAQ:ADBE), which was abandoned due to regulatory hurdles.
Figma’s platform is utilized by 95% of the Fortune 500 and 78% of the Forbes Global 2000, demonstrating its extensive use across various sectors.
The company has significantly broadened its offerings, introducing features like Dev Mode for developers, FigJam for brainstorming, and innovative AI-driven tools such as Figma Make, which can create working prototypes based on user prompts.
Its business model is subscription-based, offering tiered plans for individuals, organizations, and enterprises, with pricing tailored to different user roles and workflows.
Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, ended higher on Monday. The SPY was up 0.19% at $628.77, while the QQQ advanced 0.52% to $564.17, according to Benzinga Pro data.
On Monday, the futures of the S&P 500, Nasdaq 100, and Dow Jones indices were mixed.
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