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Elice shares fell 28% on their market debut on Tuesday (Oct 20), according to Investing.com, despite heavy demand for the 201.1 billion won IPO.
SoftBank Group shares slid 6.0% as its five-year credit-default swaps hit 432 basis points, the highest level in nearly four years, amid AI funding concerns.
CoreWeave (CRWV) stocks and bonds slumped last week on debt worries, though J.P. Morgan said most global banks have limited exposure to it.
Gotrade News - Shares of South Korean AI infrastructure firm Elice plunged 28% on their market debut Tuesday (Oct 20), according to Investing.com, as doubts over AI spending deepened. The same worries lifted SoftBank's credit risk to a near four-year high and have hit CoreWeave (CRWV), a cloud firm backed by Nvidia (NVDA).
The drop came as investors reassess what the AI infrastructure boom costs and how much it is likely to return, per Investing.com, with high borrowing costs, heavy capital requirements and uncertainty over when computing spending will turn into profit weighing on appetite for data center businesses. Last week, Australia's Nvidia-backed Firmus shelved its planned $5 billion IPO amid growing scrutiny of AI valuations, the outlet reported.
Demand for the offering was heavy before the first trade. Elice priced its initial public offering at the top of its indicative range, and Investing.com reported the following terms and subscription levels.
Regular-session close on October 20, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com.
Why Did Elice Shares Fall on Debut?
Elice shares fell as investor doubts over the AI trade deepened, according to Investing.com, even though institutional and retail investors had subscribed heavily. The stock opened at 75,700 won, a 16.4% discount to the offer price, and hit a session low of 61,000 won, down 32.6%. At the time of the report, it was last trading at 65,300 won, down 27.8% from its IPO price of 90,500 won.
The company has grown from an AI education platform into cloud services, GPU-based data centers and AI solutions for businesses, per the outlet. Elice reported revenue of 34.4 billion won and operating profit of 10.3 billion won in the first half of 2026, against full-year 2025 revenue of 39.5 billion won and operating profit of 5.2 billion won. It plans to use much of the IPO proceeds to build data center infrastructure in South Korea and to expand overseas, including in the United States, Japan and Singapore.
SoftBank Group shares slid 6.0% to ¥4,554 on Tuesday as the company's five-year credit-default swaps climbed to 432 basis points, the highest level in nearly four years, according to Investing.com. The outlet linked the move to mounting market concern over AI-related funding strain, reports of a potential large acquisition and worries about AI debt burdens flagged by rating agencies.
The drop weighed on Japan's benchmarks. The Nikkei 225 fell 911 points, or 1.4%, to around 64,005, with SoftBank alone dragging the index down by roughly 206 points in the morning session, while the TOPIX declined 1.5%, per Investing.com. The stock sits well below its 52-week high of ¥9,074, and the company is due to report quarterly earnings on November 10.
Tokyo Chip Stocks Slide on CXMT and SK Hynix Worries
The selling also spread across AI and semiconductor-linked shares in Tokyo, where Tokyo Electron, Advantest, Disco, Renesas Electronics and Kioxia Holdings declined, according to Investing.com. The outlet pointed to rapid sales growth at Chinese chipmaker CXMT, which raised oversupply fears, and a plunge in South Korea's SK Hynix on concerns about a potential dual listing of its U.S. subsidiary.
What Is Happening With CoreWeave (CRWV) Stock?
CoreWeave's stocks and bonds slumped last week on investor worries over debt financing, according to Reuters, while Investing.com noted that investors question the company's debt-funded expansion. The yield on CoreWeave's notes due 2031 touched almost 16%, and the cost of insuring against the company's debt rose to around 1,000 basis points, Reuters reported. The company carries about $50 billion of total debt, including roughly $24 billion of committed delayed draw term loans, with $15 billion drawn and $9 billion undrawn.
J.P. Morgan estimated on Tuesday that most global banks have limited exposure to CoreWeave. Its analysts put potential exposure at about $1 billion to $3 billion each for large U.S. investment banks and Japan's MUFG, and under $500 million each for most European and Asian lenders, using what they called "simplified assumptions" because banks disclose little about their AI-cycle exposure.
"From the perspective of financing banks, we view bank exposures to CoreWeave as well managed and very well secured," J.P. Morgan analysts led by Kian Abouhossein said, according to Reuters.
The bank said the key risk facing banks is a mismatch between upfront spending on AI infrastructure and revenue received over time, and it expects CoreWeave's free cash flow to remain negative until 2030, per Reuters.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
