Figma (FIG) IPO Ignites the Market
The Figma (FIG) IPO is one debut that investors will be talking about for a long time.
The company, which describes itself as a collaborative, web-based design and prototyping platform enabling teams to create, share, and iterate on user interface designs in real time, priced a full-size offering of 36.9 million shares at $33.00. It opened at $85.00, marking a 157.6% gain at first trade. Within ten minutes—and after a couple of halts—the stock surpassed $100 and continued climbing. The official first-day high was $124.63, a 277% gain above the issue price. In aftermarket trading on Thursday, it reached as high as $150.00 before closing the week at $122.00.
According to our sources, the deal was more than 40-times oversubscribed. Demand was so strong that underwriters and the company increased the pricing range from $25–$28 to $30–$32 earlier in the week. Highlighting the IPO’s strength, underwriters reported a 100% conversion rate during the roadshow—every investor meeting resulted in an order being placed.
We’re told that 70% of the allocation went to the top 25 accounts, and nearly half of the order book received zero allocation.
The 157.6% jump at the first trade was the largest IPO pop of 2025, and the 250.0% gain at the close marked the best debut performance since Cloopen Group Holdings Ltd (RAAS) in February 2021, which rose 200% on Day One.
Why the Figma Frenzy?
Figma’s story is unique and had the potential to ignite the IPO market. The company had previously agreed to a $20 billion merger with Adobe, but the deal was terminated following regulatory scrutiny. That aborted acquisition effectively created a “put” well above the IPO price.
Figma began as a browser-based design tool but has since expanded into product development and marketing, recently incorporating AI-driven features. The customer base is both vast and diversified: 78% of the Forbes Global 2000 use Figma, 85% of active users are based outside the U.S., and 70% of customers are on organization or enterprise plans. Over 1,000 customers generate $100K+ in annual recurring revenue (ARR), and 40 contribute more than $1 million annually.
When setting IPO terms, Figma disclosed Q2 revenue growth between 39% and 41% year-over-year. Whether you measure by the Rule of 40 or Rule of 60, Figma clears the bar by any metric.
This IPO will be remembered as a landmark moment—its success is expected to pave the way for more software names to enter the public markets. One comp to Figma now being discussed as a potential IPO candidate in late 2025 is Canva.
Looking ahead, traditional valuation models may not apply to Figma. It has captured the attention of traders and is expected to see extreme volatility over the next 30 days.
The last IPO to experience this level of enthusiasm was Circle Internet Group (CRCL), which traded more than 250% above its Day One close by its eleventh trading session.
Semiconductor Surge: Ambiq Micro (AMBQ) Opens With a 58% Pop
Ambiq Micro (AMBQ) exceeded expectations, opening with a 58% gain.
The company, a pioneer in ultra-low power semiconductor solutions addressing energy challenges in general-purpose and AI edge computing, priced 4.0 million shares at $24.00. The share count was upsized by 17.6%, and pricing landed in the upper half of the range.
The stock surged as high as $48.43 before pulling back to close its debut session at $38.53.
According to channel checks, demand was strong, and the offering was multiple times oversubscribed. However, some of our sources were skeptical due to competitive pressures and a shifting business strategy. Notably, price guidance was tightly controlled in the final days before the IPO—often a red flag.
We were negative on this deal—and we were wrong.
Q2 flash numbers showed a revenue decline between -7.6% and -2.9%, and the company is in the early stages of a software shift. Still, strong relationships with TSMC (TSM US) and ASE supported the bullish thesis. A conservative valuation and smaller float helped drive success. Trading volume exceeded 5 million shares, representing 125% of the float.
Ambiq Micro hit $51.76 in its first week and closed Friday at $39.51—a 64.6% gain from its issue price.
Top IPO Performances at First Trade (2025):
| Company | First Trade Gain |
|---|---|
| Figma (FIG) | 157.6% |
| Voyager Technologies (VOYG) | 125.0% |
| Circle Internet Group (CRCL) | 122.6% |
| Chime Financial (CHYM) | 59.3% |
| Ambiq Micro (AMBQ) | 58.3% |
Shoulder Innovations: A More Cautious Debut
Shoulder Innovations (SI), a commercial-stage medical technology company focused on shoulder surgery, debuted Thursday with a modest 4% gain.
The company priced a full-size deal at $15.00, well below its initial $19–$21 range. It opened at $15.60 and briefly reached $17.94 before pulling back. The stock dipped below its issue price on Day One, closing at $15.05, and declined further on Friday to $14.25.
In our view, investors were cautious about the company’s growth relative to peers and wanted a valuation discount. We commend the underwriters for adjusting to market realities, allowing early flippers to exit with a small gain.
Another Busy IPO Week Ahead
Debuting Thursday, 8/7:
- Firefly Aerospace Inc. (FLY) – A leading space and defense company offering mission-critical solutions to government and commercial clients. Seeking a market cap of $4.9B–$5.5B based on a $35–$39 range.
- WhiteFiber, Inc. (WYFI) – An AI infrastructure solutions provider targeting a market cap of $523M–$593M at $15–$17.
Debuting Friday, 8/8:
- HeartFlow Inc. (HTFL) – A pioneer in AI-powered, non-invasive diagnostics for coronary artery disease. Seeking a market cap of $1.2B–$1.32B at $15–$17.