Elice’s weak debut fuels AI concerns as oil prices climb
Summary
South Korean neocloud provider Elice fell more than 30% from its 90,500-won IPO price to 60,500 won on its first trading day, despite retail demand exceeding the offering by over 400 times. The $151 million IPO valued the company at about $755 million. Its debut intensified investor concerns that heavy AI infrastructure spending may not generate adequate returns, amid scrutiny of neocloud companies’ debt, borrowing costs and profitability. South Korean stocks also dropped, while CoreWeave shares fell in U.S. pre-market trading. Bitcoin and other assets were lower as oil prices rose on Middle East supply concerns.
