Why the choppy IPO market is good for investors

Bellwether day for First Data IPO: Pisani

The hysteria has already started: The IPO market is in trouble! First Data prices well below the range! Albertson's is in trouble!

It's not in trouble. The IPO market is repricing, and that is good news for investors.

There's an obvious reason for the hysteria. Only 13 initial public offerings have gotten done since Labor Day, about half of the planned number. There have been several high-profile postponements due to "market conditions" since Labor Day, notably Neiman Marcus, and now — perhaps — Albertson's, which failed to price last night and will try again tonight.

Of those that have gone public since Labor Day, the average price has been 18.1 percent below the midpoint of the suggested price range, according to Renaissance Capital, the firm that runs the Renaissance Capital IPO ETF (IPO), a basket of roughly 60 recent IPOs.

Read More Albertsons aims for IPO re-do at lower price, considers downsize

Obviously, if you are one of the companies going public, you are disappointed you didn't get a higher price.

But for everyone else — including the public that is buying the IPO at the open, as well as those who hope to trade it a short while later — this is great news.

Why? Because lower prices make it much more likely that the IPO will: 1) trade up at the open, and 2) not fade away in the days following the open.