South Korean AI firm Elice plunges 32% in stock market debut
AI services provider Elice fell 32% in its Seoul trading debut, as the benchmark KOSPI dropped 3.7% amid investor wariness about AI spending and profitability.
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South Korean artificial intelligence company Elice suffered a dismal stock market debut on Tuesday, closing at 60,500 won in Seoul, 32% below its IPO price of 90,500 won, Reuters reported. The company raised 201.1 billion won ($150 million) in the offering, which drew institutional orders 388 times the shares available.
Elice provides AI cloud services as well as AI-based software for education and businesses. It plans to spend most of the proceeds on portable modular data centers. Its first-half revenue tripled to 34 billion won.
The broader market also slumped, with the benchmark KOSPI falling 3.73% to its lowest close since April 7. Investors are increasingly questioning heavy AI spending and its profitability, Reuters said, and several AI-related listings have recently been shelved or delayed.