The second tech IPO of the year is going extremely well
Shares of Acacia Communications, a Maynard, Massachusetts-based maker of high-speed optical networking products, rose by as much as 36% in their debut on the Nasdaq.
The 4.3 million shares on offer priced at $23 each on Thursday, the higher end of a $21 to $23 range, to raise $103.5 million. The stock climbed to as high as $31.94 per share on Friday.
It is trading with the ticker "ACIA."
It's been a year of very few IPOs, following global-market volatility late in 2015 and early 2016 that sent several companies to the sidelines. According to EY, both IPO and merger activity in the first quarter fell to levels not seen since the last recession.
And so, Acacia's trading activity could be a welcoming sign for some investors, and for bankers on Wall Street who are missing out on underwriting fees.
The Silicon Valley Business Journal noted that the only other tech IPO of the year - by SecureWorks, a company spun off from Dell - priced below its targets and has now fallen below its offering price.
Acacia earned $239.1 million in revenues last year, up 39% year-on-year. It turned a profit of $40.5 million, according to its regulatory filing to go public.
This chart shows Acacia's first day of trading:
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