Elice Group, an artificial intelligence infrastructure company, rebounded to its daily upper limit on its second trading day on the KOSDAQ. The stock had plunged more than 30% below its initial public offering price on its debut, drawing attention from major foreign media as a warning signal for the global AI investment boom, before reversing course a day later.
Elice traded at 79,900 won as of 9:24 a.m. on the 21st, up 18,400 won, or 29.92%, from the previous session, according to the Korea Exchange. The stock had closed its first trading session at 61,600 won the previous day, 28,900 won or 31.93% below its IPO price of 90,500 won, before rising to the price ceiling on the 21st. Even after the sharp rebound, the share price remains 11.71% below the IPO price.
Elice's debut-day plunge drew interest beyond Korea in overseas financial markets. With share prices of Korean chipmakers and AI-related companies treated as a gauge of global AI investor sentiment, Elice's listing performance spilled into a broader debate over the valuations of AI companies and the sustainability of investment in the sector.
Bloomberg reported on the 20th that Elice's weak market debut was tied to concerns about whether the AI investment boom can be sustained. A company that had been little known outside Korea, the report said, had landed at the center of a debate over the high valuations of AI companies and whether earnings can support them. It read the case as evidence that investor confidence is weakening in so-called neocloud companies, which operate data centers built for AI computing.
Reuters and CNBC also said Elice's plunge weighed on sentiment toward U.S. AI-related stocks. CNBC reported that while Elice's IPO was relatively small at $150 million, investors were taking it as a signal of sentiment toward AI infrastructure investment. CoreWeave, a U.S. AI cloud company, fell more than 6% early in the session before turning higher, while Nebius and IREN also weakened in morning trading.
Barron's, the U.S. financial magazine, focused on the fact that Elice's shares tumbled despite its growth. Revenue in the first half of this year tripled from a year earlier and profitability improved, yet the company could not avoid a weak listing. The implication is that rapid top-line growth alone is no longer enough to ease investor concerns about lofty valuations and future funding burdens.
Such caution is also linked to funding pressures across the global AI infrastructure industry. CoreWeave's borrowing costs have risen sharply, with yields on its corporate bonds climbing to 15% amid concerns over its heavy debt load. Because building AI infrastructure requires vast sums, investors are increasingly demanding evidence that expanded investment is translating into actual revenue and cash flow.
