When Figma introduced its preliminary hoped-for value vary on Monday ($25-$28), it additionally revealed an uncommon resolution for its extremely anticipated IPO.
It should enable current shareholders to promote extra shares than the corporate plans to promote, by a excessive ratio. The corporate plans to supply about 12.5 million shares. But current shareholders might be allowed to money out of practically 24.7 million shares, it said.
As well as, ought to this IPO be as scorching as everybody thinks it will likely be, current shareholders will get the choice to promote, collectively, as much as 5.5 million extra shares.
Figma founder CEO Dylan Discipline has disclosed that he plans to promote 2.35 million shares. On the midrange he’ll be cashing out of over $62 million. (That could be a a lot increased quantity if the IPO costs above $28, too.)
Even with that sale, he’ll nonetheless personal an unlimited variety of shares and management the corporate. He’ll maintain 74% of the voting rights after the IPO. That is because of supervoting rights of 15 votes per share for the Class B inventory he controls, plus the correct to vote the Class B shares of his co-founder, Evan Wallace, the company says in its S-1.
Figma’s largest enterprise buyers are all cashing out some shares, as effectively, together with Index, Greylock, Kleiner Perkins, and Sequoia. Ought to the demand be there for the over-allotment, they are going to money out 1.7 million to three.3 million shares apiece. That ought to enable them to return some money to their buyers on this liquidity-starved enterprise market.
It ought to be famous, although, that every of those buyers is preserving the lion’s share of their Figma holdings. One strategy to interpret this largely secondary sale is that if the corporate hadn’t opened up share gross sales to current buyers, it won’t have had sufficient shares to satisfy the demand.
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As you would possibly count on, the corporate is not going to generate income from the shares its stockholders promote. However ought to it value above its introduced vary (as typically occurs with scorching IPOs), Figma will increase extra, as will its shareholders.
Previous to pricing, IPO specialists anticipated Figma to promote round $1.5 billion price of inventory. Ought to it value above vary and exceed that, Figma would be the biggest IPO of 2025 to this point. The IPO might occur subsequent week, so we will quickly see. Figma declined additional remark.