      onlycfo.io · 2025-08-09
      · 299d
    

Is the IPO Process a Scam? Figma's 250% Pop & the 'Money Left on Table' Myth

The article analyzes Figma's 250% IPO pop and refutes the claim that the company left $3B+ on the table by examining primary vs. secondary share sales, float dynamics, and demand generation mechanics. It concludes that while IPOs are imperfect, they are not a scam—the apparent 'mispricing' is largely a function of supply/demand mechanics around limited float and post-IPO volatility rather than true underpricing by investment bankers.

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Metrics in this report

Effective Free Float as Percentage of Reported Float

3percent (estimated)

Figma day-1 trading; derived from long-term investor allocations and underwriter stabilization

IPO Float as Percentage of Fully-Diluted Shares

8percent

Figma IPO; described as 'on the low side' compared to typical IPOs

IPO Pop Percentage

250percent

highest since 1999

Figma IPO from $33 opening price to day-1 close of $115.50

Primary vs. Secondary Share Composition

33 / 67percent ratio

Figma IPO; one-third primary (new shares), two-thirds secondary (existing shareholder sales)