Figma IPO: Price Range Raised, Oversubscribed 30x — Set to Become the "Flagship" Software IPO

TradingKey - After adopting the rare auction-like IPO pricing mechanism, cloud-based design and collaboration platform Figma has drawn overwhelming investor demand — leading the company to raise its share price range from $25–$28 to $30–$32 and report over 30 times oversubscription.

On Monday, July 28, Figma filed an updated prospectus with the U.S. Securities and Exchange Commission (SEC), increasing the lower end of its IPO price range by 20%, while keeping the number of shares offered unchanged at 36.9 million.

The company will stop taking orders at noon New York time on Tuesday, with pricing expected on Wednesday. The stock will trade under the ticker FIG on the New York Stock Exchange.

Auction Mechanism Validates Strong Demand

As previously reported by TradingKey, Figma is using a Dutch auction-style IPO process, requiring investors to submit limit orders specifying both price and quantity — rather than traditional book-building, where only volume is declared.

This mechanism allows Figma to gauge true demand and optimize pricing, and the price range increase confirms robust institutional and retail appetite.

Valuation Nears Adobe’s $20B Takeover Target

With the updated range, Figma’s pre-money valuation could reach $15.6 billion, and its fully diluted market value is projected at $18 billion — closing in on the $20 billion valuation it was set to receive in a planned 2023 acquisition by Adobe, which was blocked by regulators.

Following the explosive IPOs of Circle, CoreWeave, and Chime, Figma has emerged as one of the most anticipated U.S. IPOs of this summer and 2025, driven by the SaaS company’s financial stability, high growth potential, large and high-quality customer base, and innovative collaborative design model.

A Potential “Lead Dog” for Software IPOs

D.A. Davidson analysts noted that the software IPO market has been dormant for years, due to decelerating growth, budget tightening and software stack optimizations.

But Figma’s success could reignite investor confidence and pave the way for other major private software companies to go public — including Genesys (AI-powered customer service platform), Canva (design software rival) and Databricks (data and AI analytics).

D.A. Davidson added that Figma’s growth is aligned with a broader trend: the explosion of digital content creation by both individuals and enterprises. With generative AI removing technical barriers, more users can now design apps, websites, and interfaces without coding.

Figma is uniquely positioned to benefit from this shift — turning collaborative design into a scalable, AI-enhanced workflow.