Elice IPO sinks after strong demand

Elice Inc. made its trading debut on South Korea’s Kosdaq market after completing one of the year’s largest offerings on the tech-focused bourse. The company priced its initial public offering at 90,500 won per share, at the top of the marketed range, raising about 201.0–201.1 billion won and implying a post-listing valuation above 1 trillion won. The listing has drawn attention because Elice operates in the fast-growing AI and data-centre infrastructure market, positioning itself as a key provider of cloud and computing capacity.

Investor interest ahead of the float was intense. Institutional book-building drew demand reported at several hundred times the shares available, and retail participation was even stronger. The retail tranche was about 400 times subscribed, while subscription deposits reached roughly 10 trillion won, underscoring strong pre-listing appetite for exposure to the company and to AI-related infrastructure themes more broadly.

Despite heavy demand in the offering phase, Elice’s share price dropped steeply once trading began on Kosdaq. In early trading on the debut session, the stock fell to around 61,400 won, well below the IPO price of 90,500 won. During the session it was last seen in the low- to mid-60,000 won range, leaving the shares about 32% below the issue price by the end of the day.

This immediate reversal contrasted with the strong subscription metrics that preceded the listing. The opening-day decline ranked among the weakest performances for a large Korean IPO, particularly for a deal that raised more than $100 million. The move also came against a backdrop of more cautious sentiment toward capital-intensive AI and data-centre businesses as investors assess the risks and funding needs associated with large-scale infrastructure projects.

Elice’s prospectus detailed a sharp improvement in its recent financial results. For the first half of 2026, the company reported revenue of 34.4 billion won, tripling from its prior-year level. Over the same period it recorded an operating profit of 10.3 billion won and EBITDA of about 23.2 billion won, indicating a move into profitability alongside rapid top-line growth.

These figures were highlighted to support the investment case for the IPO and to showcase the company’s progress in scaling its AI data-centre business. The improvement in margins and earnings was a notable element of marketing efforts during the roadshow, intended to differentiate Elice from loss-making peers in high-growth technology infrastructure segments.

Elice plans to channel much of the capital raised into expanding its physical infrastructure and geographic reach. Management has outlined plans to deploy the bulk of the IPO proceeds toward launching portable or modular AI data centres and upgrading related data-centre infrastructure. This includes investments designed to support the delivery of AI computing services to enterprise and institutional clients.

The company is also targeting overseas expansion, seeking to establish a broader international footprint for its AI cloud and data-centre offerings. Mirae Asset Securities and Samsung Securities acted as lead underwriters for the deal, supporting both the capital raise and the initial placement of shares with institutional and retail investors.