- Alibaba's IPO is heavily oversubscribed with investors eagerly awaiting allocations and final pricing.
- Several institutional investors have requested individual orders over $1 billion.
- It is expected that pricing will be above the initial range of $60-$66/share and closer to $70 (or higher?).
- We have back-solved the FCF growth rates required to justify various share prices ($65-$80/share). Investors can decide if the required growth rates seem reasonable.
- Pricing and early trading will be driven by supply/demand, not intrinsic value.