On Thursday, July 31, design-tech company Figma Inc. (NYSE:FIG) launched its initial public offering (IPO).
This isn't just any tech company. It's the collaborative platform used by thousands of companies, from startups to heavy hitters like Google and Airbnb, to design everything from websites to cloud-based apps.
That, on top of Adobe's $20 billion buyout attempt back in 2022, made it one of the most anticipated IPOs in years. Everyone from Wall Street to Silicon Valley had 7/31 circled in their calendars.
And Figma absolutely exploded out of the gate, tripling on day one and racking up over $55 billion in value.
I tried to grab 1,000 shares before the open. What happened next still has me shaking my head.
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The Robinhood Twist
As a retail trader, getting in on IPOs used to be almost impossible. Wall Street's big banks had it locked down, scooping up shares before most of us could blink. But in 2021, Robinhood launched its IPO Access program, which changed everything.
It gave everyday investors a shot at buying IPO shares before they began trading publicly.
So, when Figma popped up in Robinhood's IPO Access tab, I jumped in. I read the prospectus, punched in a request for 1,000 shares at the maximum price of $33, then waited for the big day.
I got the confirmation email as well, showing $33,000 committed – but I'd only be charged if I got an allocation.
Then came IPO day.
FIG opened at $85 and ripped even higher. With shares tripling, I was already doing the math in my head, thinking "If I got filled on all 1,000 shares, I'm up over $80,000!"
Except I hadn't yet read the second email from Robinhood.
When I finally opened it, I saw this: "Your request to buy 1,000 shares of FIG was partially filled. You received 1 share at $33."
One. Out of 1,000.
So, what happened? Robinhood uses a random allocation process – essentially a lottery. It doesn't matter how many shares you request or how big your account is. It uses a fair system. But sometimes, fairness can sting.
Now, in all honesty, Figma's IPO was wildly oversubscribed. Between the massive demand and limited retail allocation, most users received only a handful of shares, if they were lucky enough to get any at all. In fact, I saw a lot of noise on Reddit from angry investors who didn't get any.
FIG isn't a stock you can just flip, either. Robinhood's policy says if you sell within 30 days, they'll lock you out of future IPOs for 60 days. So, my one lonely share? I'm keeping it as a comedic reminder of what happened – and a good story to laugh about around the dinner table.
But here's where things get interesting.
Even though IPO day is behind us, options trading on FIG is coming soon. And that's where we, as pattern traders, can really dig in.
Thanks to new SEC rules from 2023, options can now be listed as soon as two days after an IPO if volume and other listing requirements are met. At the time of writing, FIG options are now active across multiple platforms, including here on Benzinga.
But I'm not rushing in. Not yet. Instead, I'll be watching closely for the proper setup to emerge. After all, patterns take time to develop, and when they do, we take advantage of them.
So, even if you didn't get any shares (or you only got one, like me), the opportunity isn't gone. It's only just beginning.
Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.
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