It will also allow already existing shareholders to sell more shares than the company previously planned to sell at a high ratio. The company also plans to offer about 12.5 million shares. However, existing shareholders will also be allowed to cash out nearly 24.7 million shares, according to the official statement made by the company on their website.
Even more so, existing shareholders will have the option to collectively cash out up to 5.5 million more shares. Dylan Field, Figma CEO, has disclosed that he is now planning to sell 2.35 million shares. And with a simple equation, on a midrange, he’ll be cashing out over $62 million. Yet, this might also mean a higher number if the IPO price is above $28.
Still, he will own an enormous number of shares and control the company. He will hold 74% of the voting rights after the IPO. This is all due to the supervoting rights of 15 votes per share for the Class B stock he controls, plus his right to vote the Class B shares of his co-founder, Evan Wallace, said the company in its S-1.
Figma’s biggest venture investors are all cashing out some of theri shares, among those being Index, Greylock, Kleiner Perkins, and Sequoia. And in the case of over-allotment, they will cash out 1.7 million to 3.3 million shares apiece. This will give them the opportunity to return some cash to theri investors in the liquidity-starved venture market.
It should also be noted that each of these investors is keeping the lion’s share of theri Figma holdings. One way to interpret this largely secondary sale is through the company's inability to open up shares to meet the demand.
As you can already expect, the company will not make money from the shares its shareholders are selling. However, if the shares are priced above their announced range, the company will raise more.
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Before their pricing, the IPO experts expected Figma to sell around $1.5 billion worth of stock. In the case of pricing it above range and exceeding that, Figma would be the biggest IPO of 2025 to date. The IPO could also happen next week, reported TechCrunch.
It should also be noted that each of these investors is keeping the lion’s share of theri Figma holdings. One way to interpret this largely secondary sale is through the company's inability to open up shares to meet the demand.
As you can already expect, the company will not make money from the shares its shareholders are selling. However, if the shares are priced above their announced range, the company will raise more.
Subscribe to our newsletter
Before their pricing, the IPO experts expected Figma to sell around $1.5 billion worth of stock. In the case of pricing it above range and exceeding that, Figma would be the biggest IPO of 2025 to date. The IPO could also happen next week, reported TechCrunch.
