Figma‘s co-founder and CEO, Dylan Field, is poised to benefit significantly from the company’s initial public offering (IPO), which is expected to generate over $60 million for him. The ultimately cyclical company expects to sell around 12.5 million shares through this process. Field’s monetary benefits come from his own stock market investments. His enormous voting power, along with the support of other shareholders currently in place, make his compensation sky-high.
On this IPO get brought up, Field will most likely still keep 74% of the voting rights in combination with area and has crucial stakeholder (63%). His control of Class B stock affords him supervoting rights. Each share gives him a jaw-dropping 15 votes apiece. He personally has the right to vote the Class B shares held by his co-founder Evan Wallace. This gives him even more control over Figma, and his influence gets further consolidated here too.
At the IPO midrange valuation, Field is expecting to pocket more than $62 million. After stripping out the $1.05 billion from the sale of his shares, this figure gives a sense of the robust demand for Figma’s market debut. At the same time, current shareholders will get to sell almost 24.7 million shares combined. If the IPO creates high demand, these insiders are able to act. They’ll get the chance to sell an extra 5.5 million shares combined.
This means that Figma will not receive any proceeds from the shares sold by its current shareholders during the IPO process. This is an extremely critical aspect to consider. Those shareholders each have a 5.5 million share over-allotment option. If market conditions permit, they can each then cash out between 1.7 million and 3.3 million shares.
The first IPO of the fall would be a huge milestone for Figma, a popular collaborative design platform. As it prepares for public trading, Field’s substantial financial stake and voting rights underscore his pivotal role in guiding the company’s future direction.
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