Global Market: South Korea's Elice Shares Plunge 28% in Market Debut as Data Centre Stocks Shunned
- 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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18 Articles
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The Economic Times
Times of IndiaGlobal Market: South Korea's Elice shares plunge 28% in market debut as data centre stocks shunned
Elice, which raised 201.1 billion won ($150 million) in its IPO, provides AI cloud services as well as AI-based education and business software and plans to spend most of its IPO proceeds on launching portable modular data centres and related infrastructure.
South Korean AI data centre firm Elice shares tumble in IPO debut
Data-Center Firm Elice Plunges 32% in Debut After Korea IPO
Data-center infrastructure company Elice Inc. plunged in its trading debut on South Korea’s tech-heavy Kosdaq market after raising 201 billion won ($151 million) in the bourse’s biggest initial public offering this year.
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