Software maker Figma, a one-time acquisition target of Adobe Systems, is expected launch its initial public offering on Thursday. The software maker priced the Figma IPO at 33, above the expected range of 30 to 32.
The software maker will trade under the ticker FIG. The Figma IPO has been widely anticipated on Wall Street. The offering values Figma at $19.3 billion.
The Figma IPO is expected to raise about $1.2 billion as currently priced. Snowflake pulled off the biggest IPO by a software firm, raising $3.4 billion in 2020.
Figma offers cloud-based tools for the collaborative design of websites, apps and other digital products. Federal regulators blocked Adobe's $20 billion bid to acquire Figma in 2023.
Figma IPO To Spark Rebound?
A strong showing by Figma could herald a rebound in the IPO market, said Matthew Kennedy, senior strategist at Renaissance Capital.
"A warm reception for the biggest software listing by market cap in over three years would open the door to a lot of pre-IPO companies waiting on the sidelines," Kennedy said. "Arguably just as important, Figma will be the most richly valued enterprise software IPO since the 2021 boom: It will be the first software company since then to go public at over 20 times sales."
He added: "I think we'll see more high-profile software IPOs like Netskope, Avalara, and SymphonyAI in the near-term. One of the largest private unicorns, Canva, is a direct comparison to Figma, so if the deal does well they'd have a very easy time pricing an IPO."
According to Renaissance, 122 offerings have been priced in the U.S. so far this year, up 47% year-on-year while 139 offerings have been filed, up nearly 21%.
Big Venture Capital Backers
In its S-1 filing for the Figma IPO, the software maker said it had $749 million in revenue in 2025, up 48% from a year earlier.
The software maker said it has 13 million monthly active users and over 11,100 customers that generate more than $10,000 in annual recurring revenue.
In the first quarter of 2025, Figma noted 91% gross margins and 18% operating margins.
Venture capital backers include Kleiner Perkins, Greylock Partners and Sequoia Capital.
"(The Figma IPO) also is important because VC-backed tech is a key pillar of an active IPO market, and one that's been missing for over three years now," Kennedy added.
"The below-average deal activity since 2022 has coincided with a lack of VC-backed tech deals during the same time. So the return of deals like Figma signals a rebound in the IPO market as a whole."
Adobe Stock Falters
Meanwhile, Adobe stock has retreated 15% in 2025.
The maker of digital media and marketing software posted a modest beat-and-raise report for its fiscal second quarter ended May 30.
Adobe earned an adjusted $5.06 a share, up 13% year over year, on sales of $5.87 billion, up 11%, in fiscal Q2. Wall Street had expected Adobe to earn $4.97 a share on sales of $5.8 billion.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
