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Behind the scenes, the desire to court long-term investors influenced the outcome.Most Read from BloombergSeeking Relief From Heat and Smog, Cities Follow the WindChicago Curbs Hiring, Travel to Tackle $1 Billion Budget HolePATH Train Service Resumes After Fire at Jersey City StationNYC Mayor Adams Gives Bally’s Bronx Casino Plan a Second ChanceThe stock’s 250% jump in its debut session — the biggest ever first-day pop from a $1 billion-plus US IPO — meant the company and the selling shareholders effectively handed over more than $3.5 billion of value to investors that were able to get shares.Shares of Figma (FIG) fell 20.7% to $96.73 each on Monday as of 11:31 a.m., giving the company a fully diluted value of over $55 billion. Even after the pull-back, the stock trades nearly three times above its IPO price, with trading valuing the company at more than 50 times its forward sales, according to Bloomberg calculations.Figma and the banks considered pricing the shares above the ultimate $33 per share set in the IPO, according to a person familiar with the matter. In the end, Dylan Field, Figma’s co-founder and chief executive officer, wanted to bring on board certain long-term institutional shareholders, and Field signed off on the final $33 price, the person said, asking not to be identified as the information isn’t public.A Figma spokesperson declined to comment. Field didn’t immediately respond to a request for comment via his LinkedIn. Representatives for the lead banks on the deal, Morgan Stanley, Goldman Sachs Group Inc., Allen & Co. and JPMorgan Chase & Co., declined to comment.With shares oversubscribed by more than 40 times, a blockbuster debut was by no means unpredictable. Had Figma and Field opted for a higher price, however, some institutional investors may not have been willing to buy the shares.Firms with a long-term investment strategy often base their view of the stock on fundamentals, and determine their price expectations in reference to the valuations of comparable software firms. These investors are typically the most coveted backers in a first-time share sale, as they tend to bring price stability.The banks pitched Figma’s IPO valuation in line with highly valued software companies such as Snowflake Inc. and Datadog Inc. that trade at forward enterprise value to sales multiples ranging from 10 to 15 times, according to data compiled by Bloomberg.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,318.32 +80.31 (+1.29%)Dow 3044,082.28 +493.70 (+1.13%)Nasdaq21,007.01 +356.88 (+1.73%)Russell 20002,199.60 +32.82 (+1.51%)VIX18.05 -2.33 (-11.44%)Gold3,426.70 +26.90 (+0.79%)PortfolioSign in to access your portfolioSign inTop gainersCOMM CommScope Holding Company, Inc. 14.33 +6.54 (+83.95%)IDXX IDEXX Laboratories, Inc. 673.39 +137.85 (+25.74%)VSAT Viasat, Inc. 20.25 +3.67 (+22.14%)JOBY Joby Aviation, Inc. 20.80 +3.64 (+21.19%)AEO American Eagle Outfitters, Inc. 12.86 +2.12 (+19.73%)Top losersTGTX TG Therapeutics, Inc. 29.85 -5.17 (-14.76%)KRYS Krystal Biotech, Inc. 135.92 -21.07 (-13.42%)ON ON Semiconductor Corporation 50.17 -6.65 (-11.70%)HNI HNI Corporation 46.92 -3.70 (-7.31%)SPNT SiriusPoint Ltd. 18.32 -1.26 (-6.44%)Most activeNVDA NVIDIA Corporation 178.72 +5.00 (+2.88%)NIO NIO Inc. 4.6050 -0.4050 (-8.08%)JOBY Joby Aviation, Inc. 20.80 +3.64 (+21.19%)COMM CommScope Holding Company, Inc. 14.33 +6.54 (+83.95%)TSLA Tesla, Inc. 308.28 +5.64 (+1.87%)Earnings eventsTrending tickersJOBY Joby Aviation, Inc. 20.71 +3.55 (+20.66%)NIO NIO Inc. 4.6050 -0.4050 (-8.09%)COMM CommScope Holding Company, Inc. 14.37 +6.58 (+84.45%)BRK-B Berkshire Hathaway Inc. 458.51 -14.33 (-3.03%)PLTR Palantir Technologies Inc. 160.12 +5.85 (+3.79%)Top economic events