Figma Inc. Experiences 27% Stock Plunge Following Record-Breaking IPO
Design software company Figma Inc. (NYSE: FIG) experienced a significant 27% drop in its shares on Monday. This decrease comes as a sharp contrast to the massive gains seen following the company’s historic initial public offering last week.
The stock fell by $33.40, closing at $88.60, a stark drop from Friday’s closing price of $122. Figma had previously made headlines with one of the most successful IPO debuts in history, with shares skyrocketing 250% on its first day of trading after pricing shares at $33.
The company managed to raise $1.2 billion in the offering, initially valuing it at $19.3 billion. However, the stock’s rapid ascent pushed its market cap to an astounding $47.1 billion before Monday’s correction.
Based in San Francisco, Figma develops collaborative design tools that are utilized by 76% of Fortune 2000 companies. The company reported a 40% revenue growth in its most recent quarter.
CEO Dylan Field, a Brown University dropout who founded the company, still holds stock valued at over $5 billion, notwithstanding the recent decline.
The recent pullback is seen as a typical profit-taking move following a red-hot IPO. Despite this, Figma’s valuation remains nearly triple the $20 billion offered by Adobe in 2022, an acquisition deal that was subsequently blocked by regulators.
Source: CNBC