South Korea’s IPO Slump Deepens Market Anxiety as Brent Oil Surges Past $111

Elice’s disappointing market debut has intensified concerns about valuations across the AI infrastructure sector, while rising oil prices have added to uncertainty in global markets.

South Korean data centre operator Elice (0158S0) came under pressure during its stock market debut on Tuesday, adding to investor concerns over whether heavy spending on artificial intelligence infrastructure will generate sufficient returns.

The Seoul-based neocloud company closed at 60,500 won ($45.57), more than 30% below its IPO price of 90,500 won. According to Bloomberg, the offering raised $151 million and valued the company at approximately $755 million. The sharp decline came despite strong retail demand, with subscriptions exceeding the available shares by more than 400 times.

Selling pressure also spread to U.S. pre-market trading, where CoreWeave (CRWV) dropped another 3%. Neocloud providers are facing increased scrutiny over rising borrowing costs, substantial debt burdens and the ability of capital-intensive expansion plans to deliver sustainable profits. Technology stocks, Bitcoin and gold also traded lower on Tuesday morning.

Elice’s weak performance coincided with another downturn in South Korean equities. The KOSPI fell nearly 4% to close at 5,552, while Samsung Electronics shares declined around 3% and SK Hynix dropped approximately 4%.

Meanwhile, Brent crude climbed above $111 per barrel, reaching its highest level since May, while West Texas Intermediate (WTI) traded near $100. Brent’s premium of roughly $11 over WTI reflected ongoing concerns about potential supply disruptions in the Middle East and risks to shipping routes.