Elice crashes on debut

Shares in Elice, a South Korean AI data centre company, fell 32% on their first trading day in Seoul on Tuesday.

IPO raised one hundred fifty one million dollars

Elice raised two hundred one point one billion won, or one hundred fifty one million dollars, in the IPO.

Retail investors lost twelve million dollars

The retail tranche was four hundred times oversubscribed. Retail investors got twenty five percent of the offering but lost about twelve million dollars on the day based on the closing price.

“Retail investors may have blindly believed that IPO stocks would always go up.”

From coding classes to AI infrastructure

Three KAIST doctoral students founded Elice in two thousand fifteen as a coding education platform. It later moved into AI cloud infrastructure, building modular data centres for dense clusters of AI chips.

Elice caught in neocloud sector selloff

Elice is a neocloud company renting AI computing power.Investors are losing faith in the sector.

“Sentiment toward AI infrastructure has been highly volatile and often disconnected from underlying fundamentals.”