ChainCatcher report: On its first day of trading, South Korean AI services company Elice Group’s stock fell 28%. The company raised 201.1 billion Korean won (approximately $150 million) in its initial public offering, with business operations including AI cloud services and AI-powered educational and commercial software. It plans to allocate the majority of the proceeds toward launching portable modular data centers and related infrastructure. Amid high inflation driving up borrowing costs, investors are questioning whether massive investments in the AI sector can yield returns in the short term. Kim Hak-joon, an analyst at Seoul-based Kiwoom Securities, said the market is concerned that such companies may struggle to secure follow-on funding from investors. Elice’s latest stock price is 65,300 Korean won, compared to its IPO price of 90,500 Korean won; filing documents show that institutional orders during the IPO reached 388.84 times the number of shares available. Current investment sentiment in the sector has cooled, causing multiple companies to delay or cancel their listing plans.
South Korean AI firm Elice Group's IPO drops 28% on debut
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Summary
Elice Group’s on-chain data revealed a 28% decline in its stock price on its debut. The South Korean AI company raised 201.1 billion won, aiming to fund modular data centers. On-chain analysis indicates investor skepticism amid inflation and elevated borrowing costs. Kiwoom Securities analysts expressed concerns regarding future financing needs. The stock closed at 65,300 won, below its IPO price of 90,500 won. Institutional demand reached 388.84 times oversubscription, but sector sentiment has softened, with some companies postponing their listings.
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