(Bloomberg) -- Figma Inc.’s 250% surge in its debut session is the kind of coming-out party every startup dreams of when it goes public.

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The finely choreographed process for the $1.2 billion IPO, culminating in a fully diluted valuation of more than $65 billion, also puts rivals on notice that Figma’s ambitions are expanding.

The design and collaboration software company led by Dylan Field, who started the firm in 2012 with a friend from Brown University, soared above the $20 billion mark it would have fetched had a sale to Adobe Inc. not been scrapped in 2023.

Shares of the San Francisco-based firm closed at $115.50 each on Thursday in New York, more than tripling the IPO price of $33 apiece. The trading gives Figma the largest first-day pop in at least three decades for a US-traded company raising more than $1 billion, data compiled by Bloomberg show. It also makes Field one of the world’s richest people.

Adobe’s planned acquisition of Figma, which at the time would have been the biggest-ever takeover of a private software company, was panned by the Photoshop maker’s shareholders, who sent its stock down nearly 17% the day the deal was announced. Today that deal looks like a bargain.

Accounting for employee stock options and restricted stock units, including RSUs for Field, the company’s fully diluted value is more than triple what Adobe had agreed to pay in cash and stock. Figma may never again be so cheap, and as it battles with Adobe and Australian startup Canva Inc. to dominate the use of artificial intelligence in creative tools, the company’s soaring shares may open the door to some dealmaking of its own.

Investor Enthusiasm

Investors have handsomely rewarded Figma for its rapid growth, and the IPO’s bankers made sure their enthusiasm wouldn’t go unnoticed.

Figma launched its listing on July 21 with its eye on a fully diluted valuation of as much as roughly $16 billion, well below the figure in the Adobe deal. That target was still positioned as a victory, coming after a tender offer last year valuing the design-focused company at $12.5 billion.

Still, few market-watchers thought Field and his bankers from Morgan Stanley, Goldman Sachs Group Inc., Allen & Co. and JPMorgan Chase & Co. would stop there. The marketed range was raised on Monday to $30 to $32 a share from $25 to $28.