In early trading on the 12th, Korea Information Engineering Services is at the upper limit (the top of the daily price cap). The move is seen as driven by news that it indirectly invested in xAI, the artificial intelligence (AI) company founded by Elon Musk.
As of 9:10 a.m. that day, Korea Information Engineering Services is trading at 4,640 won, up 970 won (29.97%) from the previous trading day.
In March 2024, Korea Information Engineering Services invested $1 million through its subsidiary, Hwaintech Investment, in the project fund "Albert P. Lee Fund (AlbertP.LeeFund) X-III, LLC," created by APL Ventures. The fund was set up to invest in xAI.
At the time, Korea Information Engineering Services entered at about $24.0 billion based on xAI's Series B round. xAI and SpaceX later merged at an exchange ratio of 0.1433, and, considering SpaceX's target listing valuation of about $1.75 trillion–$2.0 trillion, the market views Korea Information Engineering Services' initial equity as likely to be valued at about $14.6 million–$16.7 million. In won terms, that is about 22.5 billion won.