Korean cloud services provider Elice ended its Seoul debut 32% lower despite heavy demand for the offering. The slump followed plans by three other data-center companies to cancel or postpone their listings, according to MarketWatch.
Elice, a Korean cloud services provider, closed 32% lower on its Tuesday debut on the Seoul exchange. The 201 billion won ($150 million) IPO had been 389 times oversubscribed.
MarketWatch calls the drop the latest setback this month for the artificial-intelligence trade. Three other data-center companies were recently forced to cancel or postpone their plans to float, which the outlet says shows how much momentum the investment theme has lost.
South Korean stocks and CoreWeave fall
The weak debut came alongside another sell-off in South Korean equities. According to CoinDesk, the KOSPI dropped almost 4% to finish at 5,552, with Samsung Electronics falling around 3% and SK Hynix losing roughly 4%.
Pressure also reached U.S. pre-market trading. CoinDesk reports that CoreWeave fell another 3%, and that the neocloud sector faces scrutiny over borrowing costs, high debt levels and the profitability of capital-intensive expansion plans.
Brent crude climbs above $111
Meanwhile, Brent crude topped $111 a barrel, its highest level since May, while WTI traded around $100. CoinDesk says the roughly $11 premium of Brent reflected persistent concerns about Middle Eastern supply disruptions and shipping risks.
Technology shares, bitcoin and gold were also lower on Tuesday morning, according to CoinDesk.
Sources: MarketWatch (snippet-based), CoinDesk
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