Figma Loses SGD 15 Billion in Market Value After IPO Surge

Figma shares plunged 23% on Monday, wiping out about SGD 15 billion (USD 11 billion) in market value just days after its highly anticipated initial public offering.

Credit: FIGMA

The San Francisco-based design software firm had seen its shares soar 250% during its market debut on Thursday, opening at USD 33 and closing at USD 115.50. That surge gave Figma a market capitalisation of approximately USD 56.3 billion.

By Friday, shares climbed further to USD 122, pushing the company’s value to USD 59.5 billion. However, Monday’s drop to USD 92.75 per share brought its market capitalisation down to about USD 45.2 billion.

Michael Ashley Schulman, Chief Investment Officer at Running Point Capital in Los Angeles, said the initial excitement around Figma’s business remains, but the early stock euphoria is fading as investors take profits.

Credit: FIGMA

Figma, founded in 2012 and led by Chief Executive Officer Dylan Field, offers cloud-based collaborative design tools. Its clients include Alphabet, Microsoft, Netflix and Uber.

Field owns approximately 54.2 million shares, valued at around USD 5 billion, after selling 2.35 million shares during the IPO. He retains 74.1% voting power through Class B shares, a common structure among Silicon Valley startups.

In 2023, Adobe abandoned a USD 20 billion acquisition of Figma following antitrust objections from regulators in Europe and the UK.

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• Figma shares fell 23% on Monday, cutting market value to USD 45.2 billion

• Shares had surged 250% during Thursday’s IPO debut

• CEO Dylan Field retains 74.1% voting power

Source: REUTERS