Ali-IPO price set

Reuters is reporting that the Alibaba.com IPO will be priced in the HK$10 - 12 range and that it will raise US$1.32 billion as a result. So much for my punt last Tuesday that it would be $8.88.

The Reuters piece goes on to note that "the indicative price range represents a price-to-earnings multiple of 40 to 48 times the syndicate earnings forecast for 2008". That means the company would have to make $150 - 160 million in profits next year, almost double what Goldman Sachs is forecasting for it this year.

I trust there are some money printing machines for sale on Alibaba.com. These growth targets look awfully steep for a company earning real money in the real world from real live exporters who are operating on wafer thin margins.