South Korean IPO slump adds to AI market jitters as Brent crude tops $111 — SkimNews
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- Elice (0158S0) closed its Seoul debut at 60,500 won ($45.57), down more than 30% from its 90,500-won offer price despite the retail offering being oversubscribed more than 400 times; the IPO raised $151 million at a valuation of roughly $755 million.
- CoreWeave (CRWV) slipped another 3% in U.S. pre-market trading as the neocloud sector faced scrutiny over borrowing costs, high debt and the profitability of capital-intensive expansion plans.
- KOSPI dropped almost 4% to 5,552, with Samsung Electronics falling around 3% and SK Hynix losing roughly 4% in the broader South Korean sell-off.
- Brent crude topped $111 a barrel, its highest level since May, while WTI traded around $100; Brent’s roughly $11 premium reflected persistent concern about Middle East supply disruptions and shipping risks.
Why it matters: Elice’s IPO buyers lost more than 30% on day one despite retail demand exceeding 400 times the allocation, exposing the gap between exceptional demand and valuation support. The result is closer scrutiny of neoclouds’ borrowing costs, debt loads and whether expansion spending produces sufficient returns.
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