Can't You Say 'One Trillion Large Fish' in a Decline Market…AI ELRIS Group Tops 30% On First Day Of Listing

ELRIS Group (listed as ELRIS), a company that provides artificial intelligence (AI) education and cloud services, saw its stock price fall more than 20% below its initial public offering (IPO) price on its first day of trading on KOSDAQ. Although investors deposited more than 10 trillion won to apply for its shares during the IPO, the stock price has remained well below the offering price since trading began.

At 10:45 a.m. on the 20th, ELRIS was trading at 67,800 won on KOSDAQ. This was 22,700 won, or 25.08%, below its offering price of 90,500 won. During the day, the stock price also fell to 61,000 won.

ELRIS Group was one of the stocks investors expected to perform well in the second half of this year. It also attracted strong interest during its IPO share subscription.

Applications from individual investors, made on the 7th and 8th, received 408 applications for every share available. Investors deposited about 10.2599 trillion won in total.

A total of 2,367 Korean and foreign institutions also took part in the process used to estimate demand from institutional investors. This process recorded a competition ratio of 388.84 to 1. The offering price was set at 90,500 won, the highest point in the proposed price range of 70,400 to 90,500 won. The total value of the shares offered was about 201.1 billion won, and the company's expected market value before listing was about 1.54 trillion won.

However, after the stock price fell sharply early in the trading day, the company's market value remained at around 700 billion won.

Founded in 2015, ELRIS Group plans to expand into modular data centers (DCs) and AI projects using its own AI cloud technology. Its products include El리스LXP, a platform that helps people of all ages develop AI skills, and ElisAI Cloud, a service that makes efficient use of large amounts of computing power from graphics processing units (GPUs).

Last year, the company reported consolidated sales of 39.5 billion won and operating profit of 5.2 billion won. In the first half of this year, it recorded sales of 34.4 billion won and operating profit of 10.3 billion won.

Following its stock market listing, ELRIS Group plans to increase its investment in AI infrastructure. Reports say it intends to build more data centers in the Seoul metropolitan area and the Honam region.