(Reuters) - Figma raised the proposed price range for its U.S. initial public offering on Monday and is now aiming for a valuation of $18.8 billion, in the latest sign of strong investor appetite for high-growth technology stocks.

The design software firm and some of its investors are now looking to sell shares priced between $30 and $32 each to raise $1.18 billion in the offering. That compares with its prior proposed price target of between $25 and $28 each.

The new valuation puts Figma closer to the $20 billion it had reached when Adobe ADBE.O agreed to buy it. The Photoshop maker later abandoned the deal in December 2023 after facing antitrust roadblocks in Europe and the UK.

The U.S. IPO market is recovering in 2025 after a brief speed bump in April due to tariff-related volatility. Bankers expect activity to accelerate once the summer lull ends and the fall window opens, driven by strong demand for high-growth listings.

Figma is expected to trade on the New York Stock Exchange under the symbol "FIG."

Morgan Stanley, Goldman Sachs, Allen & Company and J.P. Morgan are the lead underwriters of the IPO.