Shares of design software company Figma (FIG) soared 172.73% in their New York Stock Exchange debut on Thursday, as investors eagerly snapped up stock in what analysts are calling a "bellwether event for the tech sector". The stock opened at $90.05, well above its initial public offering price of $33, which was already higher than the expected range of $30-$32.
Figma's explosive market entrance reflects strong investor appetite for high-growth software companies, especially those with AI potential. Analysts described Figma as a "generational" software-as-a-service company that has "achieved a near-monopolistic hold on the product design market". The company's sales surged 48% to $749 million in 2024, with revenue rising another 46% in Q1 2025. Figma's products are used by 95% of Fortune 500 companies, highlighting its strong market position.
The successful IPO, which raised $1.22 billion, is seen as a positive sign for the broader tech IPO market. Figma's high-profile backers include prominent Silicon Valley venture capital firms like Index Ventures, Greylock Partners, and Sequoia Capital. The company's strong debut may encourage other private software companies to go public, potentially re-energizing the IPO market after a prolonged slowdown.