Dollar Dips on AI Worries, Euro Edges up Despite French Unrest
Retail investors poured 10.3 trillion won into the offering, but the stock still fell as AI infrastructure sentiment weakened.
- On Tuesday, Elice Group shares fell 27% to 66,600 won during their market debut on South Korea's Kosdaq after the artificial intelligence infrastructure company raised 201 billion won in the nation's largest initial public offering this year.
- The debut occurred as investor sentiment toward AI infrastructure firms weakened, following cancelled or paused listings for companies including Firmus Grid and AirTrunk amid concerns over high borrowing costs and fierce competition.
- Despite the trading decline, Elice generated significant retail demand with the offering oversubscribed more than 400 times. The company touted a 200% surge in first-half revenue to 34.4 billion won and operating profit of 10.3 billion won.
- Chief Executive Officer Jae Won Kim plans to deploy IPO proceeds to build additional AI data centers across South Korea and internationally. Mirae Asset Securities and Samsung Securities served as lead underwriters for the offering.
- While Elice currently posts operating profits, Zian Investment Management Chief Executive Officer Kim Dojoon said it remains uncertain whether the company can maintain profitability long-term. The offering attempts to break an IPO drought in South Korea's primary market.
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61 Articles
South Korea’s Elice shares jump 30% after weak IPO debut, offering relief to retail investors
Elice shares rebounded 30% on October 21 after plunging as much as 32% during their weak Kosdaq debut. The South Korean data centre firm raised about $150 million in an IPO heavily oversubscribed by retail investors, amid broader concerns over AI spending and higher interest rates.
Elice's 32% plunge on its first day of trading reflected market skepticism regarding the high valuation of AI companies. Amidst a sell-off in semiconductor and AI-related stocks, investors are evaluating future revenue growth and the potential for return on investment more strictly, serving as a test of investor sentiment across the global AI market.
Retail Investors Oversubscribed This AI IPO 400 Times. It Fell 32% Anyway
Korean retail investors flooded an AI infrastructure IPO with record demand, then watched it crater on opening day. The forces behind that collapse reach far beyond Seoul and straight into the finances of the biggest GPU cloud names trading in the US.
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