Ellis Recovers After Initial Drop on First Day of Trading

Artificial intelligence (AI) infrastructure company Ellis has rebounded for two consecutive days after a sharp decline on its first day of trading, recovering its initial public offering (IPO) price.

According to the Korea Exchange, as of 10:11 a.m. on October 22, Ellis shares were trading at 97,900 won, up 18,000 won (22.53%) from the previous trading day. Trading volume reached 5,287,795 shares, more than three times the previous day's total of 1,603,567 shares.

Since its listing on the KOSDAQ market on October 20, Ellis has experienced significant stock price volatility. On its first day, the stock closed at 61,500 won, a 31.93% drop from the IPO price of 90,500 won. However, the following day, it surged by 29.92% to reach the upper limit of 79,900 won. The stock continued to rise by over 20% on the latest trading day, surpassing the IPO price.

Analysts attribute the rapid rebound to a wave of bargain hunting following the initial drop on the first day of trading.

Ellis provides AI cloud infrastructure and industry-specific AI transformation (AX) solutions. The company has vertically integrated the processes necessary for building its modular AI data center, known as 'AI PMDC,' and has developed its own AI cloud optimization software, 'ECI.'

However, concerns remain regarding the valuation and profitability of AI infrastructure companies. Bloomberg News highlighted these concerns on October 20, noting market apprehensions about the sustainability of investments in companies like NeoCloud, which operates data centers specialized in AI computations. Analysts emphasize the importance of demonstrating corporate value through tangible results, separate from the growth expectations of the AI industry.