Elice IPO Slump Tests AI Infrastructure Valuations

South Korean AI infrastructure provider Elice Group fell about 32% on its 20 October 2026 Kosdaq debut, despite exceptionally strong demand for its IPO. The company raised 201.1 billion won (about $151 million), making it South Korea’s largest listing by proceeds in 2026. Retail subscriptions were about 400 to 408 times oversubscribed and institutional demand reached 389 times, but shares priced at 90,500 won fell as much as 38% intraday and closed around 60,500 to 61,500 won. The sell-off erased roughly 300 billion won in market value within an hour and marked the weakest first-day performance since at least 2022 for a South Korean IPO raising $100 million or more. Elice’s market value was about 674 billion won after the debut. The Elice IPO decline came despite strong first-half results: revenue more than tripled year on year to 34.4 billion won, and operating profit was 10.3 billion won. The company plans to direct most of its IPO proceeds toward modular AI data centres. The debut has sharpened scrutiny of AI infrastructure valuations, given the sector’s substantial capital requirements and reliance on sustained demand for computing capacity. Pressure on US AI cloud company CoreWeave and delays to comparable listings also point to more cautious sentiment. For crypto traders, the Elice IPO has no direct link to cryptocurrency prices, but it highlights broader investor sensitivity to capital-intensive AI businesses. Its oversubscribed offering is a reminder that strong IPO demand does not necessarily mean lasting investor conviction.