The anticipation surrounding Figma’s initial public offering (IPO) is palpable, especially with the company setting its initial price range between $25 and $28. This strategic move not only highlights Figma’s growth trajectory but also introduces a unique approach to shareholder participation in the IPO process.
In a notable twist, Figma has decided to allow its existing shareholders to sell a significantly larger number of shares than the company itself plans to offer. While Figma aims to release approximately 12.5 million shares, existing shareholders will have the opportunity to liquidate nearly 24.7 million shares. This decision reflects a growing trend among companies to provide liquidity to early investors during IPOs.
Moreover, if the IPO garners the expected enthusiasm, shareholders may collectively sell an additional 5.5 million shares. This flexibility could enhance the overall appeal of the offering, attracting more investors eager to participate in Figma’s market debut.
Dylan Field, the founder and CEO of Figma, has indicated his intention to sell 2.35 million shares, potentially netting him over $62 million at the mid-range price. This figure could increase if the IPO prices above the anticipated range, showcasing the financial rewards tied to the company’s success.
Despite this sale, Field will maintain a substantial ownership stake, retaining 74% of the voting rights post-IPO. This is made possible through the supervoting rights associated with his Class B shares, which grant him 15 votes per share, along with the ability to vote the Class B shares held by his co-founder, Evan Wallace.
Figma’s major venture capital backers, including prominent firms, are also poised to sell portions of their holdings. Depending on demand, these investors could offload between 1.7 million to 3.3 million shares each, providing them with a much-needed influx of cash in a challenging venture capital landscape.
It’s important to note that while these investors are cashing out some shares, they are retaining the majority of their Figma investments. This secondary sale could be interpreted as a strategic move to ensure sufficient shares are available to meet market demand, which might not have been possible without allowing existing investors to sell.
As the IPO approaches, experts predict that Figma could raise around $1.5 billion, positioning it as a potential frontrunner for the largest IPO of 2025. If the pricing exceeds expectations, both the company and its shareholders stand to benefit significantly. The IPO is anticipated to take place soon, and the market will be watching closely for developments.