From CoinDesk · By James Van Straten
South Korean data centre Elice closed a third below its IPO price despite retail demand exceeding 400 times the allocation, as the KOSPI fell almost 4%.
CoreWeave slipped another 3% in pre-market trading.
Brent crude topped $111 a barrel amid persistent Middle Eastern concerns.
South Korean data centre company Elice’s (0158S0) stock market debut added to nervousness surrounding artificial intelligence investments on Tuesday, as investors further questioned whether spending on infrastructure will deliver sufficient returns.
The Seoul-based neocloud provider closed at 60,500 won ($45.57), down over 30% from its 90,500 won offer price. The IPO raised $151 million at a valuation of roughly $755 million, according to Bloomberg. The slump followed a retail offering oversubscribed more than 400 times.
The weak debut accompanied another sell-off in South Korean equities. The KOSPI dropped almost 4% to finish at 5,552, with Samsung Electronics falling around 3% and SK Hynix losing roughly 4%.
Pressure has extended into U.S. pre-market trading, where CoreWeave (CRWV) fell another 3%. The neocloud sector faces scrutiny over borrowing costs, high debt levels and the profitability of capital-intensive expansion plans. Technology shares, bitcoin and gold were also lower on Tuesday morning.
Meanwhile, brent crude topped $111 a barrel, reaching its highest level since May, while WTI traded around $100. Brent’s roughly $11 premium reflected persistent concerns about Middle Eastern supply disruptions and shipping risks.