Figma (FIG) Drops 27% on Profit-Taking

We recently published 10 Stocks Bleeding Early. Figma, Inc. (NYSE:FIG) is one of the companies that stood stronger last week.

Figma fell by 27.38 percent on Monday to close at $88.6 apiece as investors resorted to profit-taking to take advantage of the two consecutive days of surge.

Figma, Inc. (NYSE:FIG) is a newly listed company, having debuted on the stock market only last Thursday.

The company initially planned to raise $1.2 billion from its initial public offering through the sale of nearly 37 million shares, comprised of 12.5 million new shares from the company and 24.5 million existing shares owned by certain shareholders.

In addition, some selling stockholders granted the underwriters a 30-day option to purchase up to an additional 5.5 million shares.

The IPO followed a terminated merger deal agreement with Adobe in 2023, under which the latter would have acquired the newly listed company for a mix of stock and cash consideration.

Although both parties believed in the merits and benefits of the merger, Adobe and Figma, Inc. (NYSE:FIG) mutually agreed to terminate the transaction based on a joint assessment that there was no clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.