Figma Shares Drop 22%, Easing After Blowout Market Debut Last Week
Shares of design software vendor Figma fell 22%, easing after a blowout market debut last week.
Figma opened at $85 on Thursday under the ticker FIG, and shares closed at $115.50 for a 250% gain. On Friday, the stock traded above $120.
Figma is the latest tech company to hit the public markets after an extended IPO drought. Artificial intelligence infrastructure provider CoreWeave debuted in March, followed by the digital physical therapy company Hinge Health in May.
The stablecoin issuer Circle, virtual chronic care company Omada Health and the online banking services provider Chime all went public in June.
In an update to its prospectus last week, Figma said it would price shares at $25 to $28 each. On Monday, it issued another update and said it expected pricing between $30 and $32. The company ultimately priced shares $1 above that range.
Figma, founded in 2012, almost had a very different story.
Adobe tried to buy the company for $20 billion in 2022, but after U.K. regulators said the acquisition would likely harm competition, the deal fell apart the following year.
