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      Elice Group's IPO in South Korea Sees Significant First-Day Decline

      Elice Group, a South Korean artificial intelligence service company, experienced a substantial drop in its stock price on its first day of trading, falling by 28%. The company raised approximately 201.1 billion Korean won (around 150 million USD) in its initial public offering, which is intended to fund the launch of portable modular data centers and related infrastructure. Elice Group specializes in AI cloud services and AI-based educational and commercial software.

      The decline in Elice Group's stock price has raised concerns among investors regarding the viability of substantial investments in the AI sector amid rising inflation and increased borrowing costs. Kim Hak-joon, an analyst at Kiwoom Securities in Seoul, noted that there are worries about the ability of such companies to secure follow-up financing from investors. Elice's stock closed at 65,300 Korean won, significantly lower than its offering price of 90,500 Korean won, despite institutional orders during the IPO being 388.84 times the number of shares available.

      The cooling investment sentiment in the AI industry has led to delays in IPO plans for several companies, reflecting broader market apprehensions about the short-term returns on large-scale investments in technology.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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