South Korea’s Elice shares jump 30% after weak IPO debut, offering relief to retail investors

Elice shares fell as much as 32% to 61,400 won in early trading on October 20. The company priced its shares at 90,500 won apiece, at the top of the marketed price range, giving it a post-listing market capitalisation of more than 1 trillion won. The weak debut came at a time when global semiconductor stocks were under pressure amid expectations of higher interest rates and concerns about the sustainability of AI infrastructure spending.

Elice raised about $150 million through its IPO and said it planned to spend most of the proceeds on launching portable modular data centres and developing related infrastructure. The company priced its offering at the top of the range and attracted strong interest from South Korean retail investors, who deposited roughly 10.3 trillion won in subscription funds in hopes of securing shares. The retail portion of the offering was oversubscribed more than 400 times.

To attract investors, Elice highlighted a 200% surge in first-half revenue to 34.4 billion won, according to its prospectus. The company also swung to an operating profit of 10.3 billion won, while earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped more than elevenfold to 23.2 billion won, according to The Straits Times. The weak debut also weighed on South Korea’s broader stock market, which has been a major beneficiary of the global AI trade and a gauge of investor sentiment towards the sector.

The benchmark KOSPI fell 3.73% to its lowest closing level since April 7.AI stocks lose steam amid rising interest rates and spending concernsAfter remaining in the spotlight during the first half of 2026 and supporting the global equities rally despite ongoing geopolitical tensions, AI-related stocks have lost momentum amid growing investor concerns about the sustainability of the rally and tighter monetary conditions.War-driven inflation has pushed interest rates higher, increasing the cost of servicing debt for companies investing heavily in AI.

S&P Global estimates that the world’s largest technology companies may have more AI-related liabilities than are currently known.Hyperscalers have announced massive capital expenditure programmes in recent quarters to expand AI infrastructure. However, analysts believe higher interest rates could put pressure on their profit margins, while elevated valuations have added to concerns about whether the expected returns from AI investments will justify the spending.(With agency inputs)Disclaimer: We advise investors to check with certified experts before making any investment decisions.