Elice Group IPO Plummets 28% on First Day

On October 20, South Korean artificial intelligence service company Elice Group saw its stock price plummet by 28% on its first day of trading, as the market's investment sentiment towards the industry cools, hindering the IPO plans of several companies. Elice raised 201.1 billion KRW (approximately 150 million USD) in its initial public offering, providing AI cloud services and AI-based educational and business software, with plans to use most of the funds to launch portable modular data centers and related infrastructure. High inflation has led to rising borrowing costs, and investors are questioning whether the substantial investments in the AI sector can yield returns in the short term. Kiwoom Securities analyst Kim Hak-joon stated that the market is concerned that such companies may struggle to secure follow-up financing. Elice's stock is currently priced at 65,300 KRW, down from the IPO issue price of 90,500 KRW, with institutional subscription orders reaching 388.84 times the number of shares available for subscription.

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