AI Fears and South Korea’s IPO Drought Weigh on Markets as Brent Tops $111

Elice’s steep post-IPO decline has renewed concerns about the sustainability of AI infrastructure investments, while climbing oil prices have added pressure to an already unsettled market.

Shares of South Korean data centre operator Elice (0158S0) fell sharply on Tuesday as investors questioned whether the enormous sums being spent on AI infrastructure will translate into adequate financial returns.

The Seoul-based neocloud provider ended its debut session at 60,500 won ($45.57), more than 30% below its IPO price of 90,500 won. Bloomberg reported that the company raised $151 million through the listing, giving it an estimated valuation of $755 million. The drop was particularly notable given that retail demand had exceeded the shares available by more than 400 times.

U.S. pre-market trading reflected similar pressure, with CoreWeave (CRWV) falling an additional 3%. Investors are reassessing the neocloud industry’s exposure to expensive borrowing, mounting debt and major infrastructure spending, questioning whether these investments can generate lasting profits. Technology stocks, Bitcoin and gold also moved lower on Tuesday morning.

The broader South Korean market weakened alongside Elice. The KOSPI slid nearly 4% to finish at 5,552, with Samsung Electronics down around 3% and SK Hynix declining approximately 4%.

Oil prices climbed at the same time, adding to concerns across financial markets. Brent crude traded above $111 per barrel, marking its highest level since May, while West Texas Intermediate hovered around $100. Brent’s roughly $11 premium over WTI pointed to persistent worries about supply disruptions in the Middle East and potential shipping delays.