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Investing.com -- Today’s IPO for design software company Figma (NYSE:FIG) was a screaming success. Shares opened for trading on the New York Stock Exchange this afternoon at $85 per share, sharply above the $33 per share pricing, then continued higher.
The stock ended the session at $116.30, up 252.4%.
The IPO was 40x oversubscribed, following the massive success of IPOs from Coreweave and Circle.
The company priced 36,937,080 shares of Class A common stock, raising $1.22 billion.
Leading the offering were Morgan Stanley (NYSE:MS), Goldman Sachs & Co (NYSE:GS). LLC, Allen & Company LLC, and J.P. Morgan.
Figma reported 2024 total revenue of $749 million, up 48% from the prior year.
Despite the success of its IPO, the company doesn’t plan on resting on its laurels.
“Some companies run out of ideas as they scale. At Figma, we have more ideas than ever. Expect us to take big swings when we see a chance to invest in our platform or pursue M&A at scale," Figma co-founder Dylan Field said in a letter in the company’s prospectus. "That means at times we will make decisions that may not seem immediately rational. And, while we always strive to exercise good judgement, sometimes we will make the wrong calls. If you decide to invest in Figma, we hope you will take a long-term view and stay patient—there is so much to build, and we will bias towards long-term compounding (measured in decades) over quarterly share price appreciation.”
DA Davidson analyst Gil Luria called Figma “the software IPO we’ve been waiting for.”
“We believe Figma is an ideal IPO candidate to lead the way for additional software IPOs over the next 12–18 months,” Luria said. “The company checks the boxes in terms of growth, profitability, and technology. Investors have been starved of new entrants into public markets in recent years as indicated by the success of oddball stocks like Coreweave and Circle.”