Ellis Group to Pursue October IPO, Targeting Neocloud Market With “AI PMDC”

Ellis Group has begun targeting the neocloud market with full-stack capabilities that combine “AI PMDC” and cloud services. Neocloud is a combination of high-performance GPUs for AI model training and inference and cloud software that uses them efficiently.

Ellis Group plans to pursue a KOSDAQ listing in October. The company also intends to accelerate its expansion into overseas markets through the KOSDAQ listing.

On the 30th, Ellis Group presented its corporate vision and post-listing growth strategy ahead of its KOSDAQ listing at CCMM in Yeouido, Seoul. The presentation was delivered by Kim Jae-won, CEO of Ellis Group.

Kim Jae-won, CEO of Ellis Group, said at the event that a decline in memory prices is unlikely for the time being in the AI infrastructure market. He added that the key issue now is faster supply capacity and supplier technology rather than memory costs.

As it outlined its corporate vision and post-listing growth strategy ahead of its KOSDAQ listing, Ellis Group said it plans to target the neocloud market and accelerate its overseas expansion based on its full-stack capabilities that combine “AI PMDC” and cloud services.

As AI spreads, expectations are growing that the neocloud market will expand. Synergy Research Group projected that the neocloud market will grow from USD 25 billion in 2025 to USD 400 billion in 2031. The CAGR for the neocloud market from 2025 to 2031 was estimated at 58%.

Leading neocloud companies include CoreWeave and Nebius in the U.S. CoreWeave’s revenue is projected to grow 13-fold from 2024 to 2027. Nebius is expected to increase revenue 116-fold over the same period.

Against this backdrop, Ellis Group is developing related businesses in South Korea. The company started out in 2015 as an AI education and training solutions provider.

It later expanded into cloud and modular data center businesses. Ellis Group’s main businesses now are AI PMDC, a modular data center dedicated to AI, and Ellis AI Cloud.

AI PMDC is characterized by its ability to build infrastructure within 3 months. Ellis Group is continuing its neocloud-related business centered on AI PMDC and Ellis AI Cloud.

Ellis Group is set to list on the KOSDAQ market in October. It plans to offer 2,222,000 shares, with a target offering price range of KRW 70,400 to KRW 90,500. The total expected offering amount is KRW 156.4 billion, and the expected market capitalization after listing is between KRW 782.1 billion and KRW 1.0054 trillion. Mirae Asset Securities is the lead underwriter, and Samsung Securities is the co-underwriter.

Ellis Group posted consolidated revenue of KRW 34.4 billion and operating profit of KRW 10.3 billion in the first half of 2026. First-half 2026 revenue accounted for 87% of full-year revenue for the previous year on a half-year basis. EBITDA for the first half of 2026 came to KRW 23.2 billion, with an EBITDA margin of 68%. The share of cloud business revenue is also increasing.

Kim said the company built its own cloud in 2021 and began external sales in 2023. He also said the share of cloud revenue rose from about 7% in 2023 to 76% in the first half of 2026.

Kim cited Ellis Group’s competitive edge as its full-stack structure, which holds both AI PMDC and cloud software at the same time. He said this structure is the basis of the company’s competitiveness.

Ellis Group conceived AI PMDC in 2020 and began operating AI PMDC in 2022. Since then, it has continued to advance related technologies by introducing NVIDIA GPU A100, building H100 clustering, and establishing liquid-cooling data centers.

This AI PMDC has shortened the time needed to build a conventional data center from 24 to 36 months to within 3 months. It was also presented as reducing initial infrastructure build costs, or TCO, by up to 40%.

The cloud segment is based on “Ellis Cloud Infrastructure” (ECI). ECI supports GPU virtualization and resource allocation.

Ellis Group is moving toward a revenue structure centered on B2B through government projects. The company is participating with Naver and Samsung SDS in a government project to build KRW 2 trillion worth of GPU infrastructure, and it is participating in the independent AI foundation model project as part of a LG AI Research consortium. It is also participating in the “All For AI” project as part of an SK Telecom consortium.

Kim said that as government-led projects are set to wrap up from the second half of 2026, the shift to B2B revenue will begin in 2026, and B2B revenue will start expanding in earnest in the second half of 2027 to early 2028. He projected that the pace of the shift to B2B revenue will also accelerate going forward.

The company is pursuing a strategy of converting power infrastructure secured by region in South Korea into AI computing resources. Ellis Group is operating a 10 MW facility in the Seoul metropolitan area, has secured a 40 MW site in the southwest region, and has secured an 80 MW site in the southeast region.

Overseas, the company is pursuing “virtual remote exports,” in which foreign customers remotely access domestic data centers and use AI computing resources. Kim said revenue related to this could come as early as the first half of next year. At the same time, the company is also discussing a plan to directly supply modular data centers to overseas countries with global partners.

Kim said that to respond to rising global demand for AI computing, data centers must be built quickly and operated efficiently. To that end, he said the funds secured through this listing will be used to expand edge AI data centers by region to ease domestic power bottlenecks, while also accelerating customized AI PMDC exports to global markets.

Source: IT DAILY · Seong Won-young
Original: https://www.itdaily.kr/news/articleView.html?idxno=241924

References

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