Figma Inc. made headlines on July 31, 2025, by pricing its IPO at $33 per share, which then skyrocketed 250% to close at $115.50 on its debut day. Despite this early success, the stock has since plummeted 81% to $22, highlighting the volatile nature of recent tech IPOs. This IPO raised $1.22 billion, with $412 million going to the company and $807 million to existing shareholders.
Figma’s IPO was notably over-subscribed—40 times—indicating strong demand, yet the company priced shares below market expectations, possibly to benefit insiders. The structure allowed early selling by executives and major investors, capturing profits while retail investors saw substantial losses. The final lockup expiration on August 31, 2026, could release up to 50% of shares worth approximately $7 billion, suggesting continued volatility ahead.
As of early 2026, key metrics show Figma with $821 million in annual recurring revenue and a growth rate of 46%. The situation at Figma underscores ongoing challenges for retail traders in the current IPO landscape, where institutional parties often have advantages in timing and information.
