Figma’s shares fell 23% on Monday (4), in motion of profit, as the euphoria around the design software company decreased, days after a successful initial public offering (IPO).
Figma’s shares, headquartered in San Francisco, California, soaked 250% during their market debut on Thursday (31), being quoted at $ 33, but closed at $ 115.50, giving the company a market value of about $ 56.3 billion.
On Friday (1st), Figma’s market value closed at $ 59.5 billion after their papers rose 5.6%to $ 122. The shares were traded at US $ 92.75 on Monday, a 23%drop, reducing its market value to about US $ 45.2 billion.
“The excitement of Figma’s business is not over yet, but the euphoria that led to its high stock price seems to be diminishing, as those who wanted to invest from the beginning bought during regular market hours, while some IPO beneficiaries are probably making profits,” said Michael Ashley Schulman, director of investments at Running Point Capital in Los Angeles.
Figma, founded in 2012 and led by executive president Dylan Field, offers cloud-based collaborative design tools with a prominent customer list that includes Alphabet, Microsoft, Netflix and Uber.
Field has about 54.2 million Figma shares, valued at about $ 5 billion, after selling 2.35 million shares in IPO. As is common in many silicon valley startups, Field retains 74.1% of voting power over Figma, given his participation in class B actions.
