Figma Inc. has raised the potential size of its US initial public offering (IPO) to US$1.2 billion, according to a filing with the US Securities and Exchange Commission (SEC) on July 28, 2025.

The San Francisco-based software company adjusted its share price range to US$30-US$32, up from US$25-US$28.

The number of shares offered remains at 36.9 million. At the top of the new price range, Figma’s valuation may reach US$15.6 billion, or around US$18 billion on a fully diluted basis, which includes stock options and restricted stock units.

This valuation is below the US$20 billion figure associated with a planned acquisition by Adobe Inc., which was abandoned in 2023 due to regulatory challenges.

Figma’s IPO will be structured as an auction, requiring prospective investors to specify both the number of shares they wish to purchase and the price they are willing to pay.

This method, commonly used in tech IPOs during the pandemic, is intended to encourage competitive bidding.

The IPO is expected to price on July 30, 2025, with shares set to trade on the New York Stock Exchange under the symbol FIG.

The offering is being led by Morgan Stanley, Goldman Sachs, Allen & Co., and JPMorgan Chase.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Failed mega-acquisitions increasingly push mature startups toward public markets

Figma’s IPO journey illustrates how regulatory scrutiny of large tech acquisitions is reshaping exit strategies for high-growth companies.

The company’s path to public markets became viable only after Adobe’s $20 billion acquisition fell apart in December 2023 due to regulatory challenges from UK and EU authorities 1.

Adobe paid a $1 billion termination fee, providing Figma with substantial resources to pursue independent growth rather than being absorbed by a tech giant 2.

This reflects broader regulatory resistance to consolidation in the tech sector, where authorities increasingly view large acquisitions as potentially anti-competitive rather than natural business evolution.

The failed deal demonstrates how companies valued in the tens of billions, like Figma’s proposed $20 billion Adobe valuation compared to its current $15.6 billion IPO valuation, may find public markets their primary path to liquidity as mega-acquisitions face mounting regulatory headwinds.