South Korea's Elice plunges 30% in market debut as investors reassess AI sector
South Korea’s Elice plunged 30% in its market debut as investors questioned AI spending, cloud demand and data center IPOs.
TL;DR
- Elice Group's shares fell 30% on their market debut.
- Investor sentiment towards the AI sector has declined due to concerns about profitability amid high inflation and borrowing costs.
- Several planned IPOs for AI infrastructure firms have been delayed or shelved.
- Elice plans to use its IPO proceeds to fund portable modular data centers and related infrastructure.
- Elice reported a tripling of revenue and a swing to operating profit in the first half of the year.