Figma "aims for a high position in the US stock market" applies for listing, potentially becoming one of the largest IPOs of the year
Design software company Figma submitted its IPO application on Tuesday, potentially becoming one of the largest IPOs of the year. Figma plans to go public as early as this month, although a spokesperson did not disclose the size or timing. The company's net profit as of March 31 was $44.9 million, with revenue of $228 million. Despite a net loss of $732 million last year, the IPO indicates the company's intention to list at a high point in the U.S. stock market. Figma had planned to be acquired by Adobe for $20 billion, but the deal was canceled due to regulatory scrutiny
According to Zhitong Finance APP, design software company Figma (FIG.US) submitted its IPO application on Tuesday, which could be one of the largest initial public offerings (IPOs) of the year. According to an informed source, the San Francisco-based design collaboration tool company Figma plans to go public as early as this month. A spokesperson for Figma declined to comment on the scale or timing of the IPO. Proposed terms for the listing will be disclosed in later filings.
For the three months ended March 31, Figma achieved a net profit of $44.9 million and revenue of $228 million, compared to a net profit of $13.5 million and revenue of $156 million in the same period last year. According to the filings, the company also saw revenue growth for the fiscal year ended December 31 last year, but due to a significant increase in operating expenses, it reported a net loss of $732 million.
This IPO indicates that some companies intend to push forward with their listing plans this summer, rather than waiting until after the September Labor Day holiday in the U.S., as the U.S. stock market has returned to historical highs, making IPOs potentially lucrative.
Figma had previously indicated in April that it had confidentially submitted its IPO application. The company develops application design and collaboration software and has 13 million monthly active users. In 2022, the company agreed to be acquired by Adobe (ADBE.US) for $20 billion, but the deal was canceled after more than a year of regulatory scrutiny.
According to reports last year, companies such as Coatue Management, Alkeon Capital Management, and General Catalyst Partners invested in the company, which reached a valuation of $12.5 billion. The filings submitted on Tuesday show that Index Ventures, Greylock Partners, Kleiner Perkins Caufield & Byers, and Sequoia Capital and its affiliates are Figma's largest shareholders.
The company's CEO and co-founder Dylan Field will continue to control the company through his super voting shares. In a letter to shareholders in the prospectus, Field stated that he does not promise that the stock price will rise. He said, "You should understand that while we have built an efficient business, our primary goal is not efficiency. Our goal is to achieve long-term growth by meeting the rapidly changing needs of designers."
Field added that he expects to expand Figma's platform through mergers and acquisitions.
The offering is led by Morgan Stanley, Goldman Sachs, Allen & Co., and JP Morgan. The company plans to list its stock on the New York Stock Exchange under the ticker symbol FIG
