AsianFin -- Australian graphic design platform Canva announced on Wednesday an employee stock sale that values the company at $42 billion, signaling a step toward a potential IPO later this year.

The stock sale comes as Canva continues to invest heavily in AI-powered tools for its more than 240 million monthly active users.

Under the plan, employees will have the opportunity to sell their shares to both new and existing investors. The round is led by existing shareholder Fidelity Management, with JPMorgan Asset Management joining as a new investor, Canva said.