When Figma announced its preliminary hoped-for cost variety on Monday ($25-$28), it also revealed an uncommon decision for its highly anticipated IPO.It will allow existing investors to offer more shares than the business plans to offer, by a high ratio.
The company plans to provide about 12.5 million shares.
Existing shareholders will be permitted to cash out of nearly 24.7 million shares, it said.In addition, must this IPO be as hot as everybody thinks it will be, existing shareholders will get the option to offer, jointly, up to 5.5 million more shares.Figma creator CEO Dylan Field has actually disclosed that he plans to offer 2.35 million shares.
At the midrange hell be cashing out of over $62 million.
(That may be a much higher number if the IPO prices above $28, too.)Even with that sale, he will still own an enormous variety of shares and manage the business.
He will hold 74% of the ballot rights after the IPO.
This is thanks to supervoting rights of 15 votes per share for the Class B stock he manages, plus the right to vote the Class B shares of his co-founder, Evan Wallace, the company says in its S-1.
Figmas most significant venture financiers are all cashing out some shares, too, consisting of Index, Greylock, Kleiner Perkins, and Sequoia.
Must the need be there for the over-allotment, they will squander 1.7 million to 3.3 million shares each.
That should allow them to return some cash to their financiers in this liquidity-starved venture market.It must be noted, though, that each of these investors is keeping the lions share of their Figma holdings.
One method to translate this mainly secondary sale is that if the company hadnt opened share sales to existing financiers, it may not have actually had adequate shares to meet the demand.Techcrunch eventSan Francisco|October 27-29, 2025As you may anticipate, the business will not make money from the shares its shareholders sell.But must it price above its announced range (as typically occurs with hot IPOs), Figma will raise more, as will its shareholders.Prior to prices, IPO experts expected Figma to offer around $1.5 billion worth of stock.
Must it price above variety and go beyond that, Figma would be the most significant IPO of 2025 to date.
The IPO might occur next week, so we shall quickly see.
Figma decreased further remark.