Formlabs weighs $500 million offering to fund next growth phase

Formlabs is considering going public as the 3D-printing company explores an IPO that could raise about $500 million, according to Bloomberg. The company is in early talks with potential advisers, although the discussions remain preliminary and the terms of any transaction could change.

The company was founded in 2011 and has developed from a 3D printer maker into a broad digital manufacturing business. Its products now include 3D printers, post-processing equipment, software and materials.

Formlabs was last valued at about $2 billion in 2021, when SoftBank Vision Fund 2 led a funding round.

The company has sold more than 130,000 printers and employs more than 750 people across eight locations. Its customers span industries including medical research and aerospace manufacturing, while its annual revenue surpasses $250 million.

Formlabs has also been pushing deeper into industrial production. In June, it launched Fuse X1, a large-format selective laser sintering system aimed at industrial applications. Tesla and Radio Flyer are among the customers that have used the system, collectively printing more than 30,000 parts in several months to accelerate development and scale production.

Companies such as 3D Systems and Stratasys rode a wave of 3D-printing hype in the early 2010s, sending their stock prices sharply higher before disappointing growth and financial results led to years of painful declines.

Desktop Metal went public through an SPAC merger in 2020. It later agreed in 2023 to an approximately $1.8 billion all-stock combination with Stratasys, but the deal was rejected by Stratasys shareholders and terminated before it closed.