P-ISSN: 2808-5957

E-ISSN: 2808-6724

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Universitas Negeri Jakarta, Indonesia

Universitas Bhayangkara Jakarta Raya, Indonesia

Email : willycsun@gmail.com, adler.manurung@dsn.ubharajaya.ac.id, igka-ulupui@unj.ac.id,

abuchdadi@unj.ac.id

INTRODUCTION

Capital is the funds used for investment by the owner in running his business. A

company or business definitely requires additional funds, so that the company's

operations can run optimally and develop more. In this funding, there is a need for

alternatives that help, such as by going public. Go Public is a process when companies

open opportunities to invest to the public. The first time an Initial Public Offering (IPO)

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Exchange. Here, stock and securities are offered to investors for the underwriter through

a Broker-Dealer who acts as a stoct agent.

Before a company conducts an IPO, the company has an obligation to issue a

prospectus containing financial and non-financial information regarding the value and

condition of the company which aims to meet the information needed by investors to

assess, determine, and make a decision whether the company in question is a company

that is worthy of being selected for investment and on the contrary. In general, financial

information consists of a statement of financial position (balance sheet), a statement of

profit or loss and other comprehensive income, a statement of changes in equity, a

contains information about underwriters, independent auditors, legal consultants, value

information (Kurniawan, Zulkarnain, & Sukmandya, 2021).

IPO underpricing is an event that generally occurs on stock exchanges, regardless

of whether the stock exchange is in a developed country or a developing country. The

importance of a literature study on underpricing in a country is needed to gain deeper

knowledge of the condition of stock underpricing. Many results that examine the factors

that have an influence on IPO underpricing in Indonesia show changing and inconsistent

findings, so this study was conducted to analyze the underpricing factors on initial public

offerings in the Indonesia Stock Exchange (Fadila & Utami, 2020).

Based on the background described above, the researcher is interested in

conducting a research entitled “Anaylisis of Underpricing Factors On Initial Public Offering

(IPO) On In Indonesia Stock Exchange”.

approach there is also a method used in this study ia a descriptive method. According to

(Ansori, 2019) the descriptive method is carried out by describing the facts which are

then followed by analysis, not only by elaborating, but by providing sufficient

understanding and explanation. The data collection technique is literature study.

Literature study is a study is a study that is used to collect information and data with the

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help of various kinds of assistance such as books, journals, articles, and others (Mirzaqon

& Purwoko, 2018). Literature study also means data collection techniques by reviewing

books, literature, notes, and reports related to the problems studied (Cahyono, 2020).

The data sources used are books, journals, articles, and similar things obtained through

Google Scholar with the keywords underpricing factors, initial public offering, dan

Indonesia Stock Exchange.

RESULTS AND DISCUSSION

Initial Public Offering (IPO)

investors is termed an initial public offering (IPO). Public offerings are made through the

in the primary market are carried out directly by issuers to potential investors with the

Underpricing

Underpricing is a situation when the stock price during the IPO is significantly lower than

the price on the secondary market on the first day. Underpricing conditions are not

profitable for companies that go public, because the funds obtained from going public

are not maximum. On the other hand, if overpricing occurs, investors will lose money

because they do not accept the initial return. The owners of the company want to

minimize underpricing, because the occurrence of underpricing will cause the transfer of

wealth (wealth) from the owners to investors (Pakusadewo, 2014).

Underpricing Factors on Initial Public Offering (IPO) On In Indonesia Stock

1. Profitability

Profitability is a financial ratio that describes the company's ability to earn profits

through all existing capabilities and sources. The indicator is ROA, which is the

comparison between net income and total assets in the last year before the

company made an initial offering (Ramadana, 2018).

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and financial risk of the company. This ratio is also called the ratio of the rate of

return on investment on the use of assets owned, meaning that this ratio is used

to find out how much net time will be obtained from each rupiah of funds contained

in the total assets. The high Return on Assets (ROA) gives a signal to investors

that the company's financial performance is good, so that investors can judge that

the stock returns that will be obtained in the future will be large (Nurazizah &

Majidah, 2019).

3. Underwriter’s Reputation

Several research results in (Risqi & Harto, 2013) show that underwriter reputation

with high reputations are more daring to set high prices for the consequences of

complete information about the market so that investors use underwriters as one

much information that can be obtained, it will easily attract investors compared to

small-scale companies (Sartika, Binangkit, & Hinggo, 2022).

5. Percentage of Stock Offered Against Underpricing

The percentage of public offering shows the portion of stock ownership that may

be controlled by the public. Ljungqvist dalam (Gunawan & Fitriasuri, 2022) states that

the compant owner’s concern fot underpricing is measured by how many stock were sold

at the time of the IPO. The percentage offered to the public is moderated by the market

capitalization value and the company’s total debt, the larger tha expected funds, the

greater the percentage offered to the public. The large percentage of stock offered by

the company is considered to have an influence on the uncertainty of the company in the

Based on the research conducted, the researcher concludes that Initial Public

Offering (IPO) is a legal term indicated for the activities of an issuer to offer and

eventually sell the securities it has issued in the form of stock or securities to the public

at large, with the aim of providing input funds to the public. issuer, both for other activities

desired by the issuer. When an IPO experiences a difference in stock prices, there are

terms underpricing and overpricing. Meanwhile, the underpricing factors On Initial Public

Offering (IPO) On In Indonesia Stock Exchange are profitability, leverage, underwriter

reputation, company size, and percentage of stock offered against underpricing.

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REFERENCE

Ansori, Yoyo Zakaria. (2019). Islam dan Pendidikan Multikultural.

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(2), 110–115.

Cahyono, Aris Dwi. (2020). Studi Kepustakaan Mengenai Kualitas Pelayanan Terhadap

Fadila, Ardhiani, & Utami, Kerry. (2020). IPO Underpricing di Bursa Efek Indonesia.

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(2), 214–222.

Gunawan, Ferry, & Fitriasuri. (2022). Faktor-Faktor yang Mempengaruhi Underpricing

Saham Pada Penawaran Umum Perdana Periode 2015-2020.

, 257–265.

Hendarsih, Ida. (2017). Strategi Membeli Initial Public Offering (IPO) di Pasar Modal

Perdana Indonesia.

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Moto, Maklonia Meling. (2019). Pengaruh Penggunaan Media Pembelajaran dalam Dunia

Pendidikan.

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(1), 20–28.

Nurazizah, Nanda Din, & Majidah. (2019). Analisis Faktor-Faktor yang Mempengaruhi

Tingkat Underpricing Pada Saat Initial Public Offering (IPO) di Bursa Efek Indonesia.

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(3), 157–167.

Pakusadewo, Mas Lukito. (2014). Analisis Faktor-Faktor yang Mempengaruhi

Underpricing Pada Initial Public Offering (IPO) di Bursa Efek Indonesia (BEI).

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Faktor yang Mempengaruhi Underpricing Saham Pada Initial Public Offering (IPO) di