It has been a terrible year for tech IPOs. Until now, only SecureWorks braved the market and it didn’t go well.
But Acacia Communications listed on the public markets today and outperformed expectations. After pricing its offering at the top of the range at $23 per share, the company soared to above $30 in its first day of trading, yielding a market cap of above $1 billion.
Backed by Matrix Partners, Capital Ventures, Summit Partners and others, Acacia has quietly built up a robust fiber optic transmission business and the company, which is growing and profitable, felt that its financials were in good enough shape to list right now.
“The IPO market has been pretty stagnant and has been a difficult environment,” said CEO Raj Shanamaugaraj. But going public “gives us the…