Pisani: Why Ferrari is joining a tough IPO market

The IPO market is starting to get exciting, but why?

Suddenly, things are heating up in IPO land. Ferrari surprised by announcing proposed terms of its IPO and beginning its road show.

And the biggest IPO of the year is coming in the middle of the week.

But why? It sure isn't because IPOs have been doing well.

Last week, 11 IPOs were scheduled to price. Only five made it through the door. And, on average, the five priced 19 percent below the midpoint of the price range, according to Renaissance Capital.

And the only to price at the midpoint — Pure Storage (PSTG), which priced at $17 — is trading today at $17 and change.

Hardly an IPO rally.

But Ferrari said they would float 17.2 million shares at $48-$52, which is about $1 billion at the midpoint. That's about 10 percent of the company, so Ferrari is being valued at about $10 billion.

The Ferrari family owns another 10 percent. Fiat Chrysler owns the remaining 80 percent; they have announced they will distribute the remaining 80 percent to shareholders early next year.

While a trading date has not been announced, I am told the deal will likely price on Oct. 20, with trading at the NYSE to begin on Oct. 21.

But before that happens, we have to get through the biggest IPO of the year: payment processor First Data is scheduled to price its IPO this Wednesday for trading Thursday, 160 million shares at $18-$20, which is about $3 billion at the midpoint.

Another huge deal, food and drug retailer Albertson's is seeking to raise 65.3 million shares at $23-$26, which at the midpoint would make it a $1.6 billion offering, also among the biggest of the year. Albertson's is the No. 3 food retailer in the country, after Kroger and Wal-Mart.