Figma is asking investors to provide a higher level of feedback than is typical as it markets its circa US$1bn NYSE IPO.
Morgan Stanley, Goldman Sachs, Allen and JP Morgan launched marketing on the proposed sale of 36.9m shares at US$25-$28 for pricing after the market close next Wednesday, July 30.
The banks are asking investors to submit orders for a specific number of shares at a specific price to provide additional granularity on overall demand.
“(Limit orders) are designed to take some fluff out of the book,” one banker involved in the Figma offering told IFR. “This is similar to the hybrid blind auction process used on IPO bookbuilds in 2021.”
The "limit order IPO bookbuild" is designed to avoid the order inflation of a traditional IPO process in which investors indicate for a larger percentage with the knowledge that allocations are likely to be scaled back.
Figma, whose software is used by 95% of Fortune 500 companies, is one of the most highly anticipated tech IPOs of 2025.
“It was our expectation that the offering would be fully spoken for at launch,” one long-only fund manager told IFR.
The digital design software provider is selling 12.5m new shares on the offering and existing shareholders are selling another 24.5m, including 2.4m shares by Figma founder Dylan Field and 13.4m shares by a charitable foundation.
Figma is growing fast.
In the three months ended June 30, the company reported a non-GAAP operating profit of US$9m-$12m on revenue of US$247m-$250m, growing the top line by 40% year-over-year, based on preliminary financial results for the quarter provided at launch.
Figma is targeting a fully diluted market capitalization of as much as US$16.8bn. That is above the US$12.5bn at which it was valued on a private secondary sale of shares in 2024 but below the US$20bn price that Adobe had agreed to purchase it for in 2023 in a failed acquisition attempt.