Elice shares fall 28% in KOSDAQ debut despite heavy IPO demand

Elice Group, a South Korean AI infrastructure firm, saw its stocks drop by 28% on its KOSDAQ debut on October 20, 2026, despite having a solid IPO and a successful first half. Investors are worrying about the future of AI data-center valuations and the impact this is going to have on the market.

A debut that opened lower and kept sliding

Elice started trading at 75,700 won, which is lower than its initial offer price of 90,500 won, according to Reuters. Its shares were then traded around 66,600 won. The price slumped to around 65,300 won. The initial public offering raised around 201.1 billion won (around 150 million dollars) with help of 2.22 million of new shares.

Heavy demand, a profit, and a modular pitch

Although the company’s IPO performance disappoints stock investors, there are already signs that Elice is generating strong interest ahead of the IPO. The company had received almost 389 times more orders than its supply of shares.

In addition, Elice also reported profits in the first half of 2026. It registered a revenue of 34.4 billion won and an operating profit of 10.3 billion won. The EBITDA for Elice stood at 23.2 billion won with a 68% margin.

The company started its operation in 2015 as a provider of AI cloud infrastructure and software. Its main selling point is its AI Portable Modular Data Centers (PMDC), which can be built in 3 months. Traditional facilities usually require two to three years to be built. Moreover, Elice claims that its concept enables it to reduce overall ownership costs by up to 40%.

The proceeds from the initial public offering will facilitate development of the local centers as well as international expansion.

Korea wants 18.4 GW. The grid is the problem.

South Korea has set its sights on getting more than a thousand trillion won ($649 billion) in investment in AI infrastructure by 2035. The said capacity targets are 8.4 GW by 2029 and 18.4 GW by 2035.

However, the Greater Seoul area had only 601 MW operational by the end of 2025, with only 921 MW still being developed, as reported by Cushman & Wakefield.

According to CBRE, the land and grid capacity around Seoul are practically reached. Besides, S&P points to the fact that corporate borrowing costs will increase due to the expansion.

Due to these factors, Elice has a stronger regional strategy that has yet to be demonstrated in terms of profitability.

Firmus, AirTrunk and the end of growth at any cost

Elice’s weak debut follows other setbacks. Nvidia-backed Firmus abandoned a planned $5 billion IPO, as Cryptopolitan reported. AirTrunk and SoftBank-backed SB Energy also postponed listings.

In 2026, however, Asian data-center mergers amounted to $21.3 billion, while debt financing amounted to $22.3 billion. Equity fundraising fell by 4.6% to $5.4 billion according to a report from Reuters.

Harry Evans, a partner at Freshfields, explained:

The conversation has shifted from growth at any cost to a much sharper focus on quality.

TechInsights analyst John Dinsdale cautioned that more and more investors are opting for established players with secure contracts, rather than getting involved in potentially speculative projects. The key question is which companies are:

“best placed to capture that growth sustainably.”

A repricing, not a collapse

Investment continues. Singapore’s DayOne could seek up to $5 billion in a November IPO.

But the IMF warned in October 2026 that weaker AI profitability and rising leverage could trigger sharp market corrections.

Elice’s weak debut doesn’t mean investors have lost interest in AI infrastructure. They just want stronger evidence that the growth will translate into lasting profits.