Elice’s sharp decline on its stock market debut has intensified worries about AI infrastructure valuations, while surging oil prices have added another layer of uncertainty to global markets.
South Korean data centre operator Elice (0158S0) faced a weak start on Tuesday as investors questioned whether the enormous investments flowing into artificial intelligence infrastructure will generate adequate returns.
The Seoul-based neocloud company ended its first trading session at 60,500 won ($45.57), falling more than 30% below its IPO price of 90,500 won. Bloomberg reported that the offering raised $151 million and valued Elice at approximately $755 million. The disappointing performance came despite strong retail interest, with the offering reportedly oversubscribed by more than 400 times.
The pressure extended to U.S. markets before the opening bell, with neocloud provider CoreWeave (CRWV) declining another 3%. Investors are increasingly examining the sector’s high borrowing costs, heavy debt loads and the profitability of expansion projects that require substantial capital. Technology stocks, Bitcoin and gold also moved lower on Tuesday morning.
South Korean equities suffered further losses alongside Elice’s poor debut. The KOSPI dropped nearly 4% to finish at 5,552, while Samsung Electronics shares slid about 3% and SK Hynix fell roughly 4%.
Oil prices added to the market unease. Brent crude climbed above $111 a barrel, reaching its highest level since May, while West Texas Intermediate traded near $100. The approximately $11 gap between the two benchmarks highlighted persistent concerns over Middle Eastern supply disruptions and potential shipping route risks.
