Design software startup Figma disclosed on Tuesday the confidential submission of documents for an initial public offering (IPO), with further details to be withheld until the paperwork is made public, ideally within approximately one month.

However, given the stock market's current stagnation, which appears influenced by the unpredictable nature of the Trump administration's trade policies and tariffs, pursuing an IPO now seems unexpected, even at a preliminary stage.

While Figma is pursuing an IPO, this does not imply adherence to the typical timeline, which commonly spans four to six weeks following the acceptance of confidential documentation.

Figma, a provider of collaborative design software and web applications, achieved a valuation of $12.5 billion in May 2024 following a tender offer that enabled existing shareholders to divest a portion of their holdings. An earlier acquisition attempt by Adobe, valued at $20 billion, failed in 2023 due to opposition from regulatory bodies in Europe and the United States.

The company gets money from venture firms like Sequoia Capital, Index Ventures, Greylock, and Kleiner Perkins. Investors from these firms are on the company's board. Many other groups, such as Andreessen Horowitz and IVP, also support the company.

Figma opted against making additional remarks.