(Reuters) -Figma raised the proposed price range for its U.S. initial public offering on Monday and is now aiming for a valuation of $18.8 billion, in the latest sign of strong investor appetite for high-growth technology stocks.

The design software firm, along with some of its investors, is looking to raise $1.18 billion by selling nearly 37 million shares priced between $30 and $32 each. That compares with its prior proposed price target of between $25 and $28 each.

The new valuation puts Figma closer to the $20 billion it had commanded when Adobe agreed to buy it. The Photoshop maker abandoned the deal in December 2023 after facing antitrust roadblocks in Europe and the UK.

The revised terms also reflect investors' growing comfort with trade uncertainty, and their willingness to back favored companies.

Figma reported $228.2 million in revenue for the three months ended March 31, compared with $156.2 million a year earlier, and its net income jumped three-fold to $44.9 million.

After hitting a speed bump when the tariffs were unveiled in April, IPOs have staged a steady recovery. Bankers expect activity to accelerate once the summer lull ends and the fall window opens, driven by strong demand for high-growth listings.

Top market heavyweights with a strong read on investor sentiment are also anticipating a more fertile environment.

Last week, Blackstone's President and Chief Operating Officer Jon Gray said "the dealmaking pause is behind us."

Figma, which is scheduled to price the deal on Wednesday, is expected to trade under the symbol "FIG" on the New York Stock Exchange the next day.

Morgan Stanley, Goldman Sachs, Allen & Company and J.P. Morgan are the lead underwriters of the IPO.

(Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Sriraj Kalluvila)