Figma is preparing for an IPO with a potential valuation of $16 billion

Figma, an American company that develops software for designers, has published an updated prospectus for its initial public offering (IPO). According to the document, the company plans to sell about 37 million shares at a price of $25 to $28 per share, CNBC reports.

This could bring Figma and its existing shareholders up to $1 billion.

After the IPO, Figma’s full valuation on a diluted basis is expected to be between $14.6 billion and $16.4 billion. The company’s co-founder and CEO Dylan Field plans to sell 2.35 million shares, which could bring him up to $65.8 million.

In 2024, during the tender offer, investors valued Figma at $12.5 billion. In 2022, Adobe planned to acquire Figma for $20 billion, but the deal was blocked by regulators.

Since the end of 2021, the flow of tech companies to the US stock exchange has slowed significantly due to fears of inflation and recessionary risks. However, the market has recently picked up again, with CoreWeave going public in March and Circle and Chime following in June.

Figma filed for an IPO on July 1. The company plans to list on the New York Stock Exchange under the ticker FIG.

According to its preliminary financial results for the second quarter, Figma expects an operating profit of $9-12 million on revenues of $247-250 million. This means an annual revenue growth of 39-41% and an increase in operating margin to 4-5% versus 3% a year earlier. In the first quarter, the growth exceeded 46%.

The company also announced that it has authorized the issuance of “blockchain shares” in the form of tokens, but does not plan to issue them at the moment. In July, Figma disclosed its investments in stablecoin and the Bitcoin exchange-traded fund.

Figma’s board of directors has been joined by Instagram co-founder Michel Krieger, who is currently head of product at Anthropic. Luis von Ahn, co-founder and CEO of Duolingo, also joined the board.

This year, Figma expanded its library of tools by launching new AI tools for website, mockup, and vector graphics creation. The company also allowed AI models to access its design servers to improve coding efficiency.