Figma Up by 250% on IPO Debut, Valuation Soars Past $60 Billion

Figma Inc., the cloud-based design collaboration platform, made headlines with a spectacular 250% surge on its first day of trading.

Figma got listed in NYSE as "FIG" on July 31, 2025

Following a $1.2 billion IPO, Figma’s market value skyrocketed beyond $65 billion, signaling renewed investor appetite for high-growth software companies.

The listing not only marks one of the biggest first-day pops in decades but also cements Figma’s position in the design and productivity space, one that even tech giants like Adobe tried and failed to acquire.

In one of the most explosive stock market debuts in recent years, collaborative design platform Figma Inc. surged 250% on its first day of trading, following a $1.2 billion IPO. The stock closed at $115.50, far above the initial offer price of $33, pushing its market capitalization to over $56 billion, with some estimates placing its fully diluted value above $65 billion.

This listing marks the largest first-day gain for a U.S.-based IPO raising over $1 billion in the past three decades an impressive feat amid a volatile tech investing climate.

From Adobe Deal to Market Domination

Figma’s public debut is drawing attention not only because of its price rally but also due to its past: Adobe Inc.’s $20 billion acquisition attempt in 2022. That deal was ultimately blocked by global regulators in 2023 on competition grounds: a development that only enhanced Figma’s reputation as a serious contender in the design software space.

Today’s market reaction seems to validate that view. CEO Dylan Field now holds an estimated $6 billion stake in the company. His recent compensation package includes stock rewards that begin vesting only after the company maintains an average stock price of $60 or higher: a milestone already surpassed on day one.

IPO Details: Oversubscribed and Overshooting Expectations

Figma's IPO attracted enormous demand, reportedly over 40x oversubscribed, leaving many investors without allocation. The offering included 12.47 million new shares from the company and 24.46 million shares from early backers, including Index Ventures, Kleiner Perkins, and Greylock Partners.

Initially priced between $30 and $32, the IPO was bumped higher just before listing and still managed to more than triple by the end of the trading session.

What Figma Does (And Why It Matters)

Figma provides cloud-based tools for designing user interfaces for web and mobile apps. What sets it apart is its real-time collaboration features: something akin to Google Docs, but for UI/UX design.

In recent years, it has expanded beyond design into developer collaboration, launching “Dev Mode” in 2023. Its latest innovation, Figma Make, leverages AI to generate working prototypes from natural language prompts, putting the platform squarely in the productivity and AI-enhanced tools category.

This expansion into developer tools and AI-integrated workflows may explain why investors are willing to pay a premium, not just for what Figma is, but for what it could become.

Financials & Market Potential

Over the last year:

• Revenue grew 46% to reach $821 million
• Operating margins (GAAP) stand at 17%, rare for newly listed software firms
• Gross margins top 91%, enabling reinvestment into R&D and scaling
• 78% of Forbes 2000 companies reportedly use Figma

With a $33 billion addressable market, Figma still has room to grow, especially as more businesses embrace remote collaboration and design-first product development.

Is Figma a Buy After the Pop?

The company’s valuation, now flirting with a price-to-sales (P/S) ratio near 70

While there’s little doubt about Figma’s product-market fit and long-term growth story, the current valuation suggests much of the optimism is already priced in.

Long-term, however, Figma’s trajectory looks strong. Its product has near-ubiquitous adoption among enterprise users, and its combination of strong margins, scalable revenue, and cutting-edge AI features puts it in a rare class of IPOs.

You can invest in stocks using SGFX stock trading platform. Learn More!

SGFX Takeaway

Figma’s IPO is more than just a market event, it’s a signal that appetite for innovative tech IPOs is returning, especially in sectors like cloud software and AI-driven productivity. Traders should monitor how Figma trades in the coming weeks as volatility and valuation pressures settle.

Whether you're looking to diversify into high-growth tech or track IPO sentiment in broader markets, SGFX keeps you updated with important insights. Open your trading account today with SGFX