Figma Tees Up Pricing of $25-28 Per Share in Closely Watched IPO

Design software firm Figma has set its tentative IPO pricing at $25-$28 per share, which would value the company at $14.6 billion-$16.4 billion on a fully diluted basis. This valuation surpasses its $12.5 billion tender offer valuation from last year but remains below Adobe's aborted $20 billion acquisition attempt. If priced at the high end of the range, Figma's debut would be the third-largest IPO this year, potentially signaling a more active IPO market for the latter half of 2025.

Analysis

Figma is proceeding with its IPO at a tentative price range of $25-$28 per share, targeting a fully diluted market capitalization between $14.6 billion and $16.4 billion. This valuation represents a notable increase from its $12.5 billion tender offer valuation last year, but remains significantly below the $20 billion price Adobe had agreed to pay before the acquisition was terminated in late 2023. This valuation gap suggests a more tempered market expectation for the design software firm as a standalone public company. The deal structure is also significant, with existing stockholders offering 24.46 million shares, nearly double the 12.47 million shares being marketed by the company itself. This indicates a substantial liquidity event for early investors. If priced at the top of its range, Figma's debut would be the third-largest of the year, positioning it as a critical bellwether for a thus-far tepid IPO market heading into the latter half of 2025.

Key Decisions for Investors

• Investors should weigh the IPO valuation of $14.6B-$16.4B against the failed $20B Adobe acquisition price, as the discount may offer an attractive entry point but also reflects post-deal termination risks and a more cautious market.
• The significant secondary offering, with existing stockholders selling shares worth up to $684.88 million, warrants scrutiny as it indicates a strong desire for liquidity from early backers at the proposed IPO valuation.
• The performance of Figma's IPO should be monitored as a key barometer for investor appetite in high-growth technology stocks and the broader health of the IPO market for the remainder of 2025.