Cramer's 'Mad Money' Recap: What to Know About IPOs

Finally, Cramer said he uses only limit orders.

IPG Photonics, an industrial laser company, was forecast to trade in the $13.50-$15.50 price range under the symbol IPGP.

The company manufactures fiber lasers for a range of uses from welding to delicate surgery.

Cramer said that if IPG Photonics prices in the middle of the range, it will be more expensive than its competitors. Although he said it should come public for $11.50 when comparing it to other laser companies, Cramer said IPG Photonics is not just any laser company. He believes it deserves to trade at a premium and said the Street knows this.

Cramer called IPG Photonics "a keeper" and said it controls 60% of its market. He said it has growth and could become a core tech holding.

He advised people to let the stock's action settle down before buying it, saying he would put his first limit order in between 10:30 a.m. and 11:30 a.m.

"This is a stock worth paying up for," he said. "It is the cream of the IPO crop."

(After the show aired, IPG Photonics priced above its range Tuesday night at $16.50, according to a Reuters report, raising $148.5 million in a 9 million-share offering that represents 21% of the company.)