Figma’s IPO values ​​the company at $12.5 billion

Figma, a cloud-based design tools company, said Thursday it will allow investors, including current and former employees, to sell their stakes in an initial public offering that values ​​the company at $12.5 billion.

That’s 25% more than the estimate at which the company raised funds in 2021, but below the $20 billion takeover bid Adobe made in 2022 Adobe and Figma canceled the planned acquisition in December after regulatory scrutiny.

The San Francisco-based startup expects the auction size to be between $600 million and $900 million, backed by more than 25 existing and new investors. The offer includes A16z, Sequoia and Kleiner Perkins.

Figma is used by tens of thousands of employees inside Microsoftwhich spends millions annually on its implementation. Google, Oracle and Salesforce also use the company’s software.

In June 2021, during the heyday of the mega-funding, Figma was valued at $10 billion in round of funding this included participation from Morgan Stanley’s Counterpoint Global. That was before the 2022 market crash sent many cloud stocks down by more than half and largely halted pre-IPO rounds.

Adobe initially said the acquisition of Figma would be a natural addition to the company’s portfolio, saying in an initial announcement that “the combination of Adobe and Figma will usher in a new era of co-creation.” In December, a regulatory filing said Adobe would pay Figma a breakup fee of $1 billion.

CNBC’s Jordan Novette contributed to this report.