Figma’s Dylan Subject will money out about $60M in IPO, with Index, Kleiner, Greylock, Sequoia all promoting, too

When Figma introduced its preliminary hoped-for value vary on Monday ($25-$28), it additionally revealed an uncommon determination for its extremely anticipated IPO. 

It would permit present 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 present shareholders might be allowed to money out of almost 24.7 million shares, it mentioned.

As well as, ought to this IPO be as sizzling as everybody thinks will probably be, present shareholders will get the choice to promote, collectively, as much as 5.5 million extra shares.

Figma founder CEO Dylan Subject has disclosed that he plans to promote 2.35 million shares. On the midrange he’ll be cashing out of over $62 million. (That may be a a lot greater quantity if the IPO costs above $28, too.)

Even with that sale, he’ll nonetheless personal an infinite 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 best to vote the Class B shares of his co-founder, Evan Wallace, the corporate says in its S-1.

Figma’s largest enterprise traders 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 permit them to return some money to their traders on this liquidity-starved enterprise market.

It ought to be famous, although, that every of those traders is retaining the lion’s share of their Figma holdings. One method to interpret this largely secondary sale is that if the corporate hadn’t opened up share gross sales to present traders, it won’t have had sufficient shares to fulfill the demand.

As you would possibly count on, the corporate won’t generate income from the shares its stockholders promote. However ought to it value above its introduced vary (as usually occurs with sizzling IPOs), Figma will increase extra, as will its shareholders.

Previous to pricing, IPO consultants anticipated Figma to promote round $1.5 billion value of inventory. Ought to it value above vary and exceed that, Figma can be the most important IPO of 2025 up to now. The IPO might occur subsequent week, so we will quickly see. Figma declined additional remark.