Elice Group, a South Korean AI services firm, experienced a significant drop in its stock price during its initial public offering (IPO), closing at 63,600 won compared to its IPO price of 90,500 won. The company raised 201.1 billion won ($150 million) and plans to invest the proceeds primarily in portable modular data centers and related infrastructure.
However, the market sentiment towards AI stocks has soured, leading to a reevaluation of the sector's growth potential. Analysts, including Ke Yan from Shenton Research, suggest that the focus has shifted from aggressive expansion to assessing the sustainability of demand for AI services. This shift has resulted in several data center firms, such as Firmus and AirTrunk, postponing their IPO plans.
Kim Hak-joon from Kiwoom Securities noted the uncertainty surrounding current demand for AI, which complicates future projections. Despite Elice's impressive revenue growth—tripling to 34 billion won in the first half of the year and achieving an operating profit of 10 billion won—investors remain cautious, reflecting a broader risk premium in the market for new listings