Figma's Ample Reasons to Praise Lina Khan for $50bn Impact
In the world of business, there's been a flurry of activity that's caught the attention of investors and analysts alike. Here's a roundup of some of the key developments.
Figma, a San Francisco-based design platform, made a splashy debut on the public market, going public on Thursday at a near-$70 billion valuation. The IPO, priced at $33 per share, gave the company an initial valuation of $19.3 billion. The offering raised $1.2 billion, primarily from existing shareholders selling shares, including founder and CEO Dylan Field.
The IPO was highly oversubscribed, with demand around 40 times the shares available. On its public debut, Figma’s stock price more than tripled, opening at around $85 and reaching highs above $107, pushing its market capitalization to roughly $46 billion, significantly surpassing the Adobe acquisition valuation from 2023. This surge delivered large windfalls to Figma’s early investors and shareholders in Silicon Valley, as well as one nonprofit investor.
Meanwhile, in the energy sector, Chevron is planning to challenge its larger rival ExxonMobil. Analysts suggest that for Chevron to close the $160 billion gap in market capitalization with Exxon, it will need to pursue more large-scale M&A. Potential targets could include Occidental Petroleum, Diamondback, and select parts of BP.
Recently, Chevron closed a $53 billion takeover of Hess, a deal that had been stalled by a 20-month arbitration battle with Exxon. Hess's 30% stake in Guyana's Stabroek oilfield, one of the most prized oil assets on Earth, is now under Chevron's control. The Stabroek oilfield, developed by Exxon in record time, holds up to $1 trillion in reserves and has a break-even price of less than $30 per barrel.
However, the courts dismissed Exxon's claim of first right of refusal to a lucrative joint venture in Guyana with Hess. This decision could potentially escalate tensions between the two energy giants.
Elsewhere, Saks Global, a luxury group, is reeling from the slump in luxury department store spending and an avalanche of debt. Public creditors who lent money for Saks' acquisition are being pushed to accept haircuts of up to 25% on the debt.
In the private equity sphere, Marc Lipschultz, a private capital group executive, has warned of "manic" levels of activity in the secondaries market. Meanwhile, Goldman Sachs is poised to buy into an ice cream maker at a €15 billion valuation.
Interestingly, Bill Gurley, a longtime scourge of underwriters, criticized the IPO process due to Figma's high trading price. Co-founder and CEO of Figma, Dylan Field, will retain control of the company through super-voting shares.
As we look ahead, both Chevron and Exxon are due to report results on Friday, and investors will be scrutinizing their performance. The coming weeks are shaping up to be an exciting time in the world of business and finance.
- The public debut of Figma, a design platform, valued at nearly $70 billion, has caught the attention of investors, with its stock price more than tripling on the first day.
- In the energy sector, Chevron, aiming to close the market capitalization gap with rival ExxonMobil, is considering large-scale M&A, possibly targeting Occidental Petroleum, Diamondback, and select parts of BP.
- Saks Global, a luxury group, is facing challenges due to a slump in luxury department store spending and an avalanche of debt, with public creditors being pushed to accept up to 25% haircuts on the debt.
- In the private equity sphere, there's been a surge in activity, with $15 billion valuation deals like Goldman Sachs' ice cream maker buy-in, and Marc Lipschultz warning of "manic" levels of activity in the secondaries market.
- As we look ahead, the upcoming results reports from Chevron and Exxon will be closely watched by investors, indicating an exciting time in the world of business and finance, with developments in technology, markets, business, finance, investing, banking, energy, and general-news sectors.
