Determinants of IPO Oversubscription: Price, Size, Delay, and Underwriter Reputation in Indonesia

Abstract

This study analyzes the effect of issue price, firm size, listing delay, and underwriter reputation on IPO oversubscription on the Indonesia Stock Exchange during the 2023–2024 period. A quantitative approach was employed using secondary data from prospectuses and the official IDX website. The population comprised all companies conducting IPOs, with a final sample of 99 companies after outlier elimination using a saturated sampling method during the period. Data analysis used multiple linear regression, classical assumption testing, as well as F-test and t-test. The F-test results showed a significance value of 0.000 (<0.05), meaning that all four variables simultaneously have a significant effect on oversubscription. The t-test results indicated that issue price has a significant negative effect (sig. 0.002; coefficient -0.254), firm size has a significant positive effect (sig. 0.005; coefficient 3.111), underwriter reputation has a significant positive effect (sig. 0.007; coefficient 2.781), while listing delay has no significant effect (sig. 0.852). This study confirms that signaling theory applies to issue price, firm size, and underwriter reputation, but not to listing delay in the context of the current Indonesian capital market. These findings imply that investment decisions in IPO shares in Indonesia are more influenced by verifiable fundamental aspects such as issue price and firm size, as well as underwriter credibility.