Elice Shares Plunge Up to 36% in Kosdaq Debut
Elice Inc. shares dropped as much as 36% during its South Korean market debut, signaling cooling investor appetite for AI infrastructure and data center investments.
Shares of Elice Inc., a South Korean neocloud and AI infrastructure provider, plunged as much as 36% during its trading debut on the Kosdaq market on October 20, 2026. Despite raising 201.1 billion won ($151 million) at the top of its marketed price range of 90,500 won per share, the stock fell to a low of 58,300 won. The debut occurred amid a broader market selloff that saw the tech-heavy KOSPI gauge lose nearly 4%.
The IPO was heavily oversubscribed by retail investors, who provided roughly 10.3 trillion won in deposits. However, the subsequent price collapse reflects growing investor caution regarding the long-term returns of massive AI capital expenditures and the burden of high borrowing costs. This volatility mirrors a global trend of setbacks for AI data center firms, including postponed listings for AirTrunk and SB Energy Global Holdings, and the cancellation of an IPO by Australia's Firmus Grids.
CEO Jae Won Kim stated that the IPO proceeds will fund the global expansion of AI data centers. While analysts from State Street Investment Management questioned the returns on AI spending relative to financing costs, Nomura Holdings argued that the market is understating profitability across the AI value chain. The downturn comes as investors scrutinize the spending plans of AI hyperscalers, including Meta, which are expected to increase combined capital expenditure to approximately $1.2 trillion next year.
