Figma’s $1.2 Billion IPO Approaching 40 Times Oversubscribed

Figma Inc.’s US initial public offering is approaching 40 times oversubscribed, according to people familiar with the matter, as the design and collaboration software company heads for what could be the year’s most in-demand listing.

The company is guiding prospective investors that its IPO, which could raise as much as $1.2 billion, is expected to price above the marketed range, the people said. The San Francisco-based firm and some of its investors are offering 36.9 million shares at $30 to $32 per share, after increasing the range Monday from $25 to $28 each.

Order-taking is expected to end at ...