Shares of data-center infrastructure company Elice plunged in their trading debut, underscoring lingering concerns about whether the artificial intelligence boom can justify the billions of dollars being poured into the industry.
The Seoul-based neocloud service provider’s shares fell as much as 33% in early trading, before paring the losses slightly. That was an abrupt downturn after the company raised 201 billion won ($151 million) in an initial public offering priced at the top of the marketed range, with the retail tranche 400 times subscribed.
The selloff threatened to undermine a tentative recovery in Asian stocks, which had been buoyed by a rebound in U.S. chipmakers as sentiment toward the AI investment boom improved. Rather than reinforcing confidence, the quick plunge rekindled swirling concerns that have particularly impacted data center companies, with some high-profile recent setbacks around the world. Firmus Grid canceled its Sydney IPO this month after investors balked at its valuation.
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