The design software (SW) corporation Figma is gearing up for expansion. Two years have passed since Adobe attempted an acquisition in 2022, offering $20 billion (about 27 trillion won), but the deal fell through due to antitrust regulations. Through an IPO (initial public offering), Figma aims to raise up to $1 billion (about 1.4 trillion won), which will elevate its valuation to as much as $16.4 billion (about 22.76 trillion won). Once a startup that Adobe nearly bought, Figma is now threatening Adobe with its larger size.
According to industry sources on the 22nd, Figma is set to list on the New York Stock Exchange (NYSE) under the ticker symbol 'FIG' next week. The offering price is projected to be in the range of $25 to $28 per share, with a total of approximately 37 million Class A shares available for transaction. Some shares held by early investors, including co-founder and CEO Dylan Field, will also be sold during the listing process. At the upper end of the valuation, it stands at $16.4 billion, which is more than 30% higher than the $12.5 billion valuation assigned to Figma's stock last April.
CEO Field plans to sell approximately 2.35 million shares of Figma during the IPO, amounting to about $66 million (approximately 91 billion won). He will retain around 10% equity post-listing, and this IPO will elevate Field into the ranks of 'billionaire founders' with assets exceeding $1 billion. Figma's board has also grown illustrious, with the addition of Instagram co-founder Mike Krieger (currently Chief Product Officer of Anthropic) and Luis von Ahn, CEO of Duolingo, among the new directors.
An IT industry official noted, 'Since the IPOs of major U.S. tech companies have sharply declined since 2021, Figma's valuation and stock price trends are expected to influence the upcoming listings of companies like Anthropic, OpenAI, and Stripe.'
Adobe attempted to acquire Figma for $20 billion in 2022, but after facing backlash from antitrust authorities in the U.S. and Europe, the review was delayed for over a year, leading to its eventual abandonment at the end of 2023. Figma has since strengthened its independent trajectory and rapidly grown in size.
Figma has quickly expanded its market share in the UI/UX (user interface and user experience) design collaboration tool sector, emerging as a key solution to replace Adobe's 'XD.' Its web-based real-time collaboration, version control, and auto-save features are particularly optimized for remote and distributed environments, becoming the standard in team-oriented design workflows. Recently, Figma has also widened its reach into the tech and fintech sectors by engaging in stock issuance services via 'CartaX,' and investing in Bitcoin ETFs (exchange-traded funds) and stablecoins.
Figma's performance is also on an upward trend. The company reported that its revenue for the second quarter was between $247 million and $250 million, with an operating profit of $9.0012 million. The revenue growth rate compared to the same period last year is estimated to be 39–41%, continuing high growth following the first quarter (46%). The operating profit margin improved from 3% in the same period last year to 45%. According to venture capital PitchBook, Figma has raised over $740 million from investors such as Andreessen Horowitz, Sequoia, and General Catalyst since its establishment.
In the tech industry, there are assessments that Figma's upcoming IPO may serve as a pivotal point shaking up the design SW market beyond just a mere listing. As demand for Adobe's traditional design SW shows signs of stagnation, competition is intensifying with cloud-based services including Figma, Canva, and Pixlr.
Greg Moskowitz, a Mizuho Securities analyst, stated in a report on the 19th (local time) that 'Figma's listing could represent a structural threat to Adobe's dominance in the design SW market,' adding that 'the intuitive, collaboration-centric tools are expanding the influx of non-designers, differentiating itself from Adobe's complex subscription-based ecosystem.' He further indicated that 'Post-Figma's IPO, the risks to Adobe's market capitalization and profitability may increase,' lowering the target price from $530 to $280, and adjusting the investment opinion to 'sell.'