Elice Shares Plunge 32% in Record-Breaking South Korean IPO Debut
Elice Inc. shares plummeted 32% during its Kosdaq debut before a partial recovery, signaling growing investor skepticism toward AI infrastructure valuations and debt-funded expansions.
Shares of Elice Inc., a South Korean neocloud and AI infrastructure provider, plunged as much as 32% during its trading debut on the Kosdaq on October 20, 2026. The decline marked the worst opening-day performance for a major South Korean IPO on record for companies raising over $100 million. Despite raising 201.1 billion won ($151 million) at the top of its marketed range and seeing retail demand oversubscribe the offering by 400 times, the stock fell to a low of 58,300 won from its IPO price of 90,500 won.
The selloff triggered a broader downturn in Asian tech stocks, contributing to a nearly 4% drop in the benchmark KOSPI index and dragging down AI hardware giants Samsung Electronics and SK Hynix. The volatility reflects a global cooling of the AI trade, mirroring delayed or canceled listings for other data center firms including Firmus, AirTrunk, and SB Energy. Analysts attribute the slump to rising borrowing costs and skepticism regarding the long-term returns on massive AI capital expenditures.
CEO Jae Won Kim stated that the IPO proceeds will fund the expansion of AI data centers globally. While the stock rebounded by the 30% daily limit to 79,900 won on Wednesday following upbeat U.S. tech earnings, it remains below its initial offering price. The event has intensified scrutiny of neocloud providers, with some forecasts suggesting the majority may cease independent operations by 2030 due to cost pressures.
