Data-center firm Elice plunges 32% in debut after Korea IPO
The Seoul-based neocloud service provider raised 201 billion won ($151 million) in the Kosdaq's biggest initial public offering this year.
Elice, a data-center infrastructure company based in Seoul, experienced a significant decline of 32% in its trading debut on South Korea's Kosdaq market following its successful initial public offering. The IPO raised 201 billion won ($151 million), marking the largest tech-related offering in Korea this year. Shares of Elice plummeted from an initial price of 90,500 won to as low as 61,400 won during early trading on Tuesday.
The company's listing resulted in a market capitalization exceeding 1 trillion won, demonstrating a strong valuation despite the challenges faced by the sector. The debut serves as a litmus test for investor confidence in the data-center industry, especially after a series of setbacks worldwide. Competitors such as Firmus Grid, Coreweave, AirTrunk, and Nscale have also faced difficulties, with concerns over borrowing costs, intense competition, and long-term returns from substantial AI-related investments affecting their valuations.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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