Elice’s disappointing IPO performance has intensified doubts about AI infrastructure spending, while a sharp rise in oil prices has further unsettled financial markets.

South Korean data centre firm Elice (0158S0) suffered a steep decline on Tuesday after going public, adding to concerns about whether heavy investment in artificial intelligence infrastructure will deliver the returns investors expect.

The Seoul-based neocloud provider closed at 60,500 won ($45.57), more than 30% below its offering price of 90,500 won. According to Bloomberg, the IPO generated $151 million and valued the company at around $755 million. The weak debut came even though retail demand was exceptionally strong, with subscriptions exceeding the available shares by more than 400 times.

The negative sentiment spread to U.S. pre-market trading, pushing CoreWeave (CRWV) down another 3%. Investors are increasingly questioning the neocloud sector’s ability to manage high borrowing expenses, substantial debt and costly expansion programmes while maintaining profitability. Technology shares, Bitcoin and gold also declined on Tuesday morning.

South Korean stocks faced additional pressure as Elice’s debut disappointed investors. The KOSPI fell almost 4%, ending the session at 5,552. Samsung Electronics lost about 3%, while SK Hynix dropped roughly 4%.

Energy markets also contributed to investor anxiety. Brent crude climbed past $111 per barrel, its highest level since May, as WTI traded close to $100. The approximately $11 difference between the benchmarks reflected continued concerns over potential Middle Eastern supply disruptions and risks to key shipping routes.