Elice’s poor stock market debut has raised fresh concerns about AI infrastructure valuations, as rising crude prices added to broader market volatility.
Shares of South Korean data centre provider Elice (0158S0) fell sharply on Tuesday, reflecting investor doubts about whether substantial spending on artificial intelligence infrastructure can generate sufficient returns.
The Seoul-based neocloud company finished its first trading day at 60,500 won ($45.57), more than 30% below its initial public offering price of 90,500 won. Bloomberg reported that the IPO raised $151 million, placing the company’s valuation at approximately $755 million. The decline came despite intense retail investor demand, with the offering subscribed more than 400 times.
Concerns also weighed on U.S. pre-market trading, where CoreWeave (CRWV) shares fell another 3%. Neocloud companies are facing growing scrutiny over elevated financing costs, significant debt obligations and whether their capital-heavy expansion strategies can produce sustainable profits. Technology stocks, Bitcoin and gold were also trading lower on Tuesday morning.
Elice’s disappointing debut coincided with renewed selling across South Korea’s equity market. The KOSPI dropped nearly 4% to close at 5,552. Samsung Electronics declined approximately 3%, while SK Hynix shares lost around 4%.
Crude oil prices added to the uncertain market outlook. Brent crude rose above $111 per barrel, reaching its highest level since May, while West Texas Intermediate (WTI) hovered near $100. Brent’s roughly $11 premium over WTI underscored continuing fears of supply interruptions in the Middle East and possible disruptions to shipping routes.
