Ferrari shares are seemingly as hard to come by as its new turbo-charged 488 GTB.
Investors have been clamoring to pay a rich price for a piece of the company's stock, which begins trading Wednesday. Sources told CNBC that shares in the luxury automaker are expected to price at the very top of their anticipated $48 to $52 range, and could even go to $53. That would give Ferrari a valuation around $10 billion, or more than three times last year's sales of 2.8 billion euros.
But behind the emotional pull of Ferrari, fundamental market facts seem to have gotten lost in the scarlet fever of its public offering.
Yes, Ferrari is a hugely powerful brand — arguably the world's most valuable auto brand. And yes, the wait time for its new 488 GTB or 488 Spyder is more than two years, suggesting that Ferrari has plenty of room to ramp up production when it wants to hit the throttle to deliver growth.
The mindset of eager Ferrari investors can be summed up two words: It's Ferrari. Everything else is details.
Yet Ferrari is going public at an especially fragile moment in the sports car market — and for the company itself. Here are five things investors should consider before jumping into the Ferrari IPO frenzy.