Figma’s shares more than tripled in their New York Stock Exchange debut Thursday, signaling renewed investor appetite for technology initial public offerings after a multiyear slump.
The San Francisco?based design software company priced its IPO at $33 a share, raising $1.2 billion, with most proceeds going to existing shareholders. Shares opened at $85 and were halted after surging past $112 before closing at $115.50, up 250% from the offer price. The closing price valued Figma at about $68 billion.
Figma reported $247 million to $250 million in second?quarter revenue, up about 40% year over year, with operating income between $9 million and $12 million. The company said more than 13 million people use its products monthly, two?thirds of whom are not professional designers.
Founded in 2012, Figma’s public debut follows the collapse of Adobe’s $20 billion acquisition attempt in 2023 after U.K. antitrust regulators opposed the deal. NYSE President Lynn Martin said the strong investor response could open the floodgates for more tech IPOs this year.
This article first appeared on GuruFocus.
