Figma’s Auction-Like IPO Set Up to Capitalize on Strong Demand

Figma Inc. is running its IPO more like an auction than a traditional listing, in an effort to wring the most out of its highly anticipated public debut.

The San Francisco-based company is asking prospective investors in its initial public offering to precisely state the number of shares they wish to buy and at what price, according to a person familiar with the matter. Figma and some of its backers are seeking to raise as much as $1.03 billion in the listing.

Though numerous tech companies including DoorDash Inc. and Airbnb Inc. deployed the approach in their debuts during the ...