Financial experts are expressing growing concern over the trend of decreasing free float—the percentage of a company's shares that are publicly traded—in recent initial public offerings, citing the software company Figma as a prime example. A report from October 17, 2025, highlights that Figma was listed with a free float of just 7 percent, which was followed by a 333 percent surge in its stock price the day after its debut. This trend, where a small proportion of shares are available for public trading, can lead to increased demand and significant initial price increases. However, it also brings risks, including potential for sharp stock price declines and difficulties for investors in buying or selling shares without affecting the price. The discussion points to a broader market dynamic where companies may be structuring IPOs to ensure strong initial demand, which can contribute to stock volatility.
Experts Raise Concerns Over Low Free Float in Tech IPOs, Highlighting Figma's Post-Listing Surge
FIG
Related News
FIG
🟢 FIG is trading 3.06% up today as Q4 revenue beats and AI momentum drives growth
FIG
🟢 FIG is trading 15% up today after beating Q4 estimates and issuing strong FY2026 guidance
FIG
🟢 FIG is trading 15.7% up today on Q4 earnings beat and 136% Net Dollar Retention
FIG
Figma's fourth quarter 2025 revenue accelerated to 40% growth as Net Dollar Retention rose to 136%.
FIG