Elice, an AI infrastructure company, hit the upper limit on the second day of its listing, but is still below the issue price
According to a report by the Korean Economic Daily on October 21, Elice Group, an AI infrastructure company providing AI cloud and educational and office software, saw a significant rebound the day after its listing on the KOSDAQ. As of 9:15 AM that morning, Elice was priced at 79,900 Korean won, an increase of 18,400 Korean won from the previous trading day, a rise of 29.92%. The previous trading day's closing price was 61,600 Korean won, down 28,900 Korean won from the issue price of 90,500 Korean won, a decline of 31.93%. The report stated that even if the price reached the limit increase for the day, the stock price would still be below the issue price.Bloomberg reported on October 20 that Elice fell about 32% on its first day of trading, becoming a case of weakened confidence in so-called new cloud companies, and noted that it was at the center of the debate regarding AI company valuations and their ability to realize those valuations. Reuters stated that the sharp drop again raised market concerns about the sustainability of large investments in AI infrastructure and the investment recovery cycle. CNBC reported that the impact of the listing performance has spread to U.S. data center-related stocks. The scale of this public offering was $150 million, and the company plans to use the listing funds for the construction of modular data centers and related infrastructure.
