Data centre infrastructure firm Elice’s 33% plunge in ‘ugly debut’ rekindles AI spending doubts
The Seoul-based firm’s IPO raised 201 billion won, with the retail tranche 400 times subscribed
Shares of South Korean data center infrastructure firm Elice plummeted by 33% in their IPO debut, reigniting doubts about the viability of AI-related investments. The Seoul-based neocloud service provider raised 201 billion won (US$151 million) in the offering, which was 400 times oversubscribed in the retail tranche. The rapid decline followed the company's decision to shift from a coding education platform to AI cloud infrastructure, providing servers, cooling systems, networking equipment, and software.
Concerns over borrowing costs, intense competition, and long-term returns from massive AI spending have dampened investor appetite for the sector. The sharp drop in Elice's stock sent a negative signal to investors, highlighting the challenges surrounding the neocloud industry and the broader AI investment boom.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
