From The Economic Times · Reuters · · 1m 10s
South Korea's Elice Shares Plunge 28% in Market Debut
South Korea's Elice Group shares plummet 28% in market debut as data centre stocks face investor skepticism.
In brief
South Korea's Elice Group shares plummet 28% in market debut as data centre stocks face investor skepticism. Elice Group's AI services shares dropped 28% on market debut after raising 201.1 billion won ($150 million) in IPO, with investors questioning AI sector demand. Originally reported by The Economic Times.
Elice Group Shares Plunge
Elice Group shares plummeted 28% in their market debut on Tuesday.
IPO Details
Elice raised 201.1 billion won ($150 million) in its IPO, providing AI cloud services and education software.
Investor Concerns
Investors question whether massive AI spending can pay off amid elevated inflation and borrowing costs.
Analyst Quote
Kim Hak-joon, an analyst at Seoul-based Kiwoom Securities, said: 'There's worry that these kinds of companies may not be able to get additional funding from investors'.
“There's worry that these kinds of companies may not be able to get additional funding from investors”
Market Reaction
Elice's shares traded at 65,300 won versus IPO pricing of 90,500 won with institutional orders 388.84 times the shares available.
Financial Performance
Elice reported revenue tripled to 34 billion won and swung to an operating profit of 10 billion won for the first half of the year.
What matters most
Elice Group's AI services shares dropped 28% on market debut after raising 201.1 billion won ($150 million) in IPO, with investors questioning AI sector demand.
