The stock of creative software company Figma (FIG) soared 250% in its first trading day.
Figma’s share price more than tripled in its New York Stock Exchange (NYSE) debut, rising from an initial public offering (IPO) price of $33 U.S. to close at $115.50 U.S., an increase of 250%.
Figma is the latest technology company to hold a successful IPO, following new issuance from stablecoin issuer Circle (CRCL) and artificial intelligence (A.I.) company CoreWeave (CRWV).
The big move higher in its trading debut pushed Figma’s market capitalization to $68 billion U.S. The offering raised $1.2 billion U.S. for the company.
Figma makes web-based software that allows people to collaborate on slide decks, digital whiteboards, and design apps and websites.
Despite the IPO win, there have been questions raised about Figma’s long-term prospects given the emergence of A.I. and its ability to accomplish similar creative tasks at a lower price point.
Figma claims to have more than 13 million monthly users, two-thirds of whom are not designers. According to the company, Microsoft (MSFT), Netflix (NFLX), and Uber (UBER) are customers.
In its IPO filing, Figma said it generated $9 million U.S. to $12 million U.S. in operating income on $247 million U.S. to $250 million U.S. in revenue, with sales growing 40% year over year.
