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Cramer: This red-hot IPO should never have been priced so low

This year has not been a good year for initial public offerings. Despite the downturn of overall IPOs, Jim Cramer highlighted Acacia Communications as a star for its incredible moves on the tape recently.

At the end of July 2015, there were 121 companies that came public, raising a total of $21.2 billion, according to Renaissance Capital. There are currently just 48 IPOs this year, which have raised only $8.6 billion.

Acacia came public in May at $23 a share and shot up to $29 on its first day of trading. On Tuesday it closed at $59, up 177 percent from its IPO price.

"Acacia Communications has run up a lot, but the IPO never should have been priced so low in the first place, considering the company's remarkable growth," the "Mad Money" host said.

Acacia is a supplier of parts for the optical networking space, with products relied on by cloud infrastructure operators and internet service providers. It makes digital signal processors and optical interconnect modules that play an important role in the physical infrastructure of the...


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