On its first day of trading, Figma's stock surged over three times, reaching a valuation of 50 billion USD, igniting a tech IPO frenzy

Software development company Figma (FIG) opened at $85 on its first day of trading in the U.S. IPO, with its stock price soaring more than three times its IPO issue price of $33, and at one point breaking through $112 and hitting the upper limit.

Media reports indicate that this strong opening performance once again demonstrates that the technology IPO market is restarting after several years of stagnation since early 2022. At that time, the U.S. IPO market was stalled due to soaring inflation and rising interest rates. This year, online bank Chime, stablecoin issuer Circle, AI infrastructure provider CoreWeave, and health tech companies Hinge Health and Omada Health have all gone public.

The first transaction price for Figma was $85, giving the company a valuation of approximately $50 billion. Its stock code is FIG, and trading was suspended that day when the stock price briefly exceeded $112. After the lunch break, the stock price was reported at $101.60, an increase of 207.88%.

Last week, Figma stated in a filing that it set the IPO pricing range at $25 to $28 per share, which was later updated to $30 to $32 on Monday, ultimately pricing at $1 above the upper limit. This issuance raised $1.2 billion, with Figma issuing 12.47 million new shares, while investors including Index Ventures, Greylock Partners, and Kleiner Perkins sold 24.46 million shares of existing stock.

Based on the outstanding shares listed in the filing, this IPO brought Figma a market value of $16.1 billion; if employee stock options and restricted stock units (RSUs) are included, the fully diluted valuation is approximately $18.5 billion; if further accounting for the restricted shares held by CEO Dylan Field (which are yet to vest), the fully diluted valuation will exceed $19 billion. Based on the opening price, his shares are worth over $4.5 billion.

According to media reports, Figma's IPO was oversubscribed by more than 40 times, with over half of the subscription applications receiving no allocation, indicating strong market demand. This is the first large-scale software company IPO in the U.S. since SailPoint Inc. went public in February 2024.

CEO: We won't be distracted by the capital markets

Figma was founded in 2012 and is headquartered in San Francisco. It ranked 45th on CNBC's 2025 "Disruptor 50" list of private companies. In 2022, Adobe agreed to acquire Figma for $20 billion, but the deal fell through in 2023 due to concerns from UK regulators that the merger could harm market competition.

Figma primarily develops web-based collaboration software that allows users to co-edit presentations, digital whiteboards, and designs for websites and applications. Field stated in a media interview on Thursday that regardless of the market performance on the first day of trading, the company must "stay focused, stick to its mission, listen to customer feedback, and always keep our priorities in mind."

"I need to remind myself and the team of the most important point: the stock price is just a reflection of a moment in time. We are likely to see various market behaviors today and in the coming weeks."

"After going public, we must continue to run at full speed and not be distracted by the capital markets."

"This is a time when we can create tremendous value for the community and our customers, and the capital markets are the stage to achieve this goal."

Figma has over 13 million monthly active users, two-thirds of whom are not professional designers. The prospectus shows that as of March 31, more than 1,000 customers pay Figma over $100,000 annually, including major companies like Google, Microsoft, Netflix, and Uber.

Like many software companies, Figma charges customers based on the number of users and the type of seats. The company launched the Dev Mode feature in 2023 to enhance collaboration with developers and has recently integrated AI technology into several tools. The Figma Make product launched this year allows users to automatically generate runnable prototypes by inputting prompts.

In its preliminary financial report for the second quarter, Figma reported revenue of $247 million to $250 million, a year-on-year increase of approximately 40%; operating profit was between $9 million and $12 million.

Will "massively" seek acquisition opportunities in the future

Analysts believe that whether Figma can become a widely used tool among office workers beyond designers will be key to its long-term success. Andrew Reed, a board member of Figma and partner at Sequoia Capital, stated that the company's tools are rapidly gaining popularity among software developers, product managers, and marketers.

Sequoia Capital is one of Silicon Valley's most well-known venture capital firms, having first invested in Figma in 2019. Reed noted that at that time, Figma's products had already been widely adopted by many companies.

This year, AI-driven software development tools like Lovable and Bolt have rapidly emerged as potential competitors to Figma. Field stated that deeply integrating AI features into Figma's products is a top priority. "We have a lot of exploration space in creating excellent AI products and experiences."

Field reiterated in a media interview that he has committed to "massively" seeking acquisition opportunities in the shareholder letter of the prospectus.

He mentioned that there are many assets in the product design and development field that could align with Figma.

"It must be an excellent team, quality assets, and the team culture must be consistent with Figma."

This IPO boosts the scale of new stock issuance in the US stock market

Media reports indicate that this IPO has pushed the total amount of initial public offerings on US exchanges this year to exceed the same period last year. As of now (excluding financial instruments like SPACs), there have been over $21 billion in new stock issuances in 2025, close to the $20.2 billion of the same period in 2024.

The high demand for Figma's IPO is also attributed to a subscription method close to an auction mechanism. A source familiar with the matter told the media that potential investors need to specify their bids and the number of shares they wish to purchase According to the document, Field retains 74.1% of the voting rights after the IPO by holding Class B shares with 15 times the voting power.

Lynn Martin, president of the New York Stock Exchange, stated on CNBC's "Squawk on the Street" on Thursday that more IPOs are expected to follow.

"I believe that given the very successful pricing of Figma last night, and the continued strong demand on the order book this morning, this will open the floodgates for a new round of IPOs."