Elice drops 32% in debut as investors test AI build-out profits
Why it matters: The volatile IPO signals tougher scrutiny of debt-heavy AI infrastructure spending as borrowing costs rise.
South Korean AI infrastructure provider Elice sank 32% in its market debut Tuesday after raising 201 billion won, or about $151 million, in an IPO priced at the top of its range, before rebounding roughly 30% on Wednesday. The sharp swings added to signs that investors are taking a harder look at whether the billions flowing into AI data centers and cloud capacity can produce durable returns. Analysts cited growing concern over debt-funded expansion, especially among neocloud companies that build specialized cloud services for AI workloads. The pressure is especially notable in South Korea and across Asia, where chipmakers and related tech firms have been major beneficiaries of the global AI spending surge.