Technology IPO Sees a Comeback! Design Software Giant Figma (FIG.US) Successfully Raises $12 Billion, Listing on NYSE Tonight

We have learned that on Wednesday, design software company Figma (FIG.US) announced its successful initial public offering (IPO) of raising $12.2 billion in funds. This marks a significant milestone after a long winter of investment for pure technology companies' IPOs, with investors' enthusiasm for such offerings showing signs of resurgence. This company, headquartered in San Francisco, and some existing shareholders issued 369 million shares at a price of $33 per share, exceeding the previously set target range of $30 to $32. The company had already raised its issuance price range earlier this week, indicating strong market demand. After experiencing a long period of frozen capital markets in the United States, investors' interest in high-growth technology companies is reviving, which will encourage more companies to seek listings. Figma's IPO also coincides with the termination of its $20 billion merger deal with Adobe (ADBE.US) due to antitrust regulatory issues in December 2023. Currently, many venture-backed startups, particularly those in software and artificial intelligence (AI) fields, are exploring the public market response. These companies are betting on improved valuations and lower interest rates to inject more momentum into the second-half IPO market. This issuance is seen as a test of investor confidence, which may pave the way for other waiting-to-list venture-backed technology startups. Mergermarket Capital Markets Managing Director Sam Kerr said: "The successful IPOs of CoreWeave (CRWV.US) and Circle (CRCL.US) show that technology companies are facing favorable listing environments, or perhaps signaling a restart of the market, which has been stuck since early 2022." According to fully diluted shares, Figma's IPO valuation reaches approximately $193.4 billion, significantly higher than its estimated value of $125 billion achieved through last year's equity recapitalization, which allowed employees and early investors to cash out some stock. IPO Enthusiasm This company, currently heavily investing in AI technology and integrating it with its platform, provides real-time collaborative design tools for digital products. PitchBook Senior Analyst Derek Hernandez noted: "Figma's excellent performance after listing may spark market enthusiasm for IPOs of Stripe, Databricks, and other technology unicorns with revolutionary technologies this year." With support from top-tier venture capital firms such as Sequoia Capital and Kapor Capital, Figma has adopted a Dutch auction pricing mechanism, requiring investors to declare their bid quantities and prices. The company's stock will begin trading on the New York Stock Exchange (NYSE) tomorrow under the ticker symbol "FIG". Morgan Stanley, Goldman Sachs, Allen & Company, and Morgan Stanley & Co. have acted as the joint bookrunners for this IPO.