Controversy over initial public offerings is raging once again, after design software firm Figma went public and saw its stock surge 250 per cent — reaching a $60bn market cap.
Critics — including venture capitalist Bill Gurley — accused banks of deliberately underpricing shares to hand easy profits to favoured institutional clients. To many observers, the process looks rigged.
With $FIG we have another massive "POP" highlighting the gross inefficiency in the modern IPO process. It's very simple. They REFUSE to match supply/demand (that happened today). They brag about the mis-match - "30X oversubscribed." The outcome is expected & fully intentional.
— Bill Gurley (@bgurley) July 31, 2025
The outrage is understandable. If a company prices its IPO at $33 and the stock opens at $115.50, the most charitable interpretation might be professional malpractice or gross incompetence, with $3bn left on the table.
