Korean AI firm Elice falls 30% in its stock-market debut as AI listings cool
CNBC puts the debut in context: other AI data-center listings shelved this month, and analysts on why pricing changed.
Shares of South Korean AI services company Elice Group fell about 30% on their first day of trading on October 20, last trading at 63,600 won against an IPO price of 90,500 won, CNBC reports. The IPO raised 201.1 billion won (about $150 million), mostly for portable modular data centers.
Analysts noted the deal was priced on October 6, before the recent sell-off in AI stocks, even though institutional orders were 388.84 times the shares on offer. CNBC lists other AI data-center listings shelved this month: Nvidia-backed Firmus in Australia, a Singapore REIT IPO from Blackstone-backed AirTrunk, and SoftBank's SB Energy.
Elice says first-half revenue tripled to 34 billion won with a 10 billion won operating profit. "Elice's debut shows the AI infrastructure trade has moved from 'build at any cost' to 'who is paying and for how long'," said Shenton Research's Ke Yan.
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Initial public offering
After exploring South Korea's Elice plunges 30% in market debut as investors reassess AI sector, for how a deal can be oversubscribed and still fall, start with Initial public offering.
Wikipedia's overview of how a private company sells shares to the public, usually underwritten by investment banks that also arrange the stock-exchange listing.
Wikipedia · Wade · 5 min
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