A highly requested offer, then a declining stock market debut. The case of Elice, a South Korean company active in AI services and cloud infrastructures, illustrates a new phase in the race for artificial intelligence: investors continue to look at the sector, but are asking for clearer evidence on revenues and the sustainability of investments.
Today, October 20, on the first day of trading on Kosdaq, the Elice stock lost up to 32%, falling to 61,400 won compared to the 90,500 won of the placement price. The company raised about 201 billion won, or $151 million. The initial public offering, or IPO, had attracted institutional requests for almost 389 times the available shares: a strong initial interest which, however, did not prevent sales on the stock exchange.
What Elice’s debut tells us
Elice was born as a digital training platform and has expanded to cloud services and artificial intelligence. With the funds raised it intends to develop modular data centers. The market is evaluating whether the growth of these infrastructures can be transformed into sufficient revenues to justify the necessary capital.
The drop in the stock does not erase the operating results reported by the company: in the first half of 2026, revenues rose to 34 billion won and the company returned to an operating profit, after a loss in the same period of the previous year. The stock market also looks ahead: costs, competition and investment return times weigh as much as the growth recorded so far.
| Signal | What to observe |
|---|---|
| Elice: up to -32% on debut | An in-demand IPO does not guarantee a post-listing upside |
| Asia: Kospi -3.61% | In the Reuters survey of October 20, caution also involved large technology stocks |
| ASML: demand beyond capacity in 2027-28 | Demand for chip machinery remains strong, but production capacity and profitability also matter |
| Below par data center bonds | Investors are asking for greater guarantees on the revenues that will have to repay the debt |
The Asian picture is broader than a single stock: the MSCI Asia ex-Japan index lost 0.93%, the Nikkei 1.28% and the Kospi 3.61%. European futures were indicated weak before the start of trading. These are data from one session, not a forecast for Piazza Affari or for the entire European market: geopolitical tensions, oil, rates and company results also contribute to moving the indices.
Why Europe looks to Elice
The European connection passes, above all, through semiconductors and infrastructure financing. ASML, a Dutch group that makes chip-making machinery, said demand will exceed its production capacity in 2027 and 2028, despite plans to increase it. It is a sign of robust demand, but also a challenge: being able to produce and invest enough without losing sight of returns.
On the credit front, some bonds linked to data center projects fell below par. Investors want to understand whether the revenues from AI will cover the debts incurred to build these infrastructures. It is a useful context to read Elice’s debut: the market is distinguishing between those who promise computing capacity and those who demonstrate the ability to transform it into revenues.
The issue also affects Italy. Data centers and cloud services are necessary infrastructure for businesses and consumers, but they require adequate energy and networks. The European Commission aims to triple the capacity of data centers in the Union over the next five to seven years and has proposed a common system to make energy and water consumption more transparent.
For European markets, the upcoming results of big technology companies will be a test: investors will be looking for indications on revenues and the ability to sustain investments. Meta is expected on Wednesday, followed this week by Tesla and chipmakers Lam Research and Texas Instruments.
Elice’s debut is not enough to establish the outcome of the AI race. However, it is also a useful reminder for those who follow the European markets. Between a promising technology and a profitable investment there is a decisive step: that of the accounts.
