Figma, Once Valued at $20B, Files for IPO!

U.S. design software firm Figma disclosed its IPO prospectus on Tuesday, potentially one of the largest initial public offerings (IPOs) of the year.

Insiders reveal the San Francisco-based company may list as early as this month, with proposed listing terms to be detailed in later filings.

The company gained fame in 2022 when industry giant Adobe announced a $20 billion acquisition bid, but the deal collapsed by late 2023 due to regulatory pressure, with Adobe paying Figma a $1 billion breakup fee.

Figma reported a $44.9 million net profit and $228 million in revenue for the first three months of this year, up from $13.5 million profit and $156 million revenue last year. However, despite 2024 revenue of $749 million (up from $505 million in 2023), a sharp rise in operating costs led to a $732 million net loss, compared to a $738 million profit in 2023.

The 2024 loss is attributed to a one-time expense tied to a May stock buyback offer, while 2023’s profit was boosted by the $1 billion Adobe termination fee.

Figma reportedly filed for IPO confidentially in April.

Analysts suggest the company’s decision to push for a summer listing, rather than waiting past the U.S. Labor Day holiday in September, leverages the U.S. stock market’s return to historic highs for potentially hefty returns.

Major shareholders include Index Ventures (16.8% pre-IPO), Greylock (15.7%), Kleiner Perkins (14%), and Sequoia Capital (8.7%).