The Effect of Enterprise and Primary Market Metrics on Underpricing

The growing number of investors through the end of 2025 suggests an improvement in financial literacy. Nevertheless, many individuals continue to experience investment losses, particularly when investing in companies undertaking Initial Public Offerings (IPOs). Investors therefore need to understand essential information about the companies whose shares they intend to purchase. Accordingly, this study aims to identify the factors that influence IPO underpricing. The method used to analyze this data employs a quantitative approach. The data is secondary, and the documentation technique was used to collect it. The data analysis technique employed is multiple regression analysis, with the research sample consisting of 146 companies that went public (IPO) between 2023 and 2025. The sampling technique used was saturation sampling. Thus, the research sample consists of 146 companies. The factors influencing underpricing are company size, with a significance value of 0.000, and IPO proceeds, with a significance value of 0.003. Meanwhile, the factors that have no significant influence are sales growth, with a significance value of 0.352; ROA, with a significance value of 0.928; and DER, with a significance value of 0.989. Investors should carefully evaluate relevant information before making investment decisions to improve their prospects of earning returns on stocks with differing valuations.