| As one of the company’s funding resources, The Initial Public Offering’s activity is slightly increasing in recent years. Underpricing is a common occurrence for firms undertaking an IPO. The phenomenon was occurred when there’s a positive difference between the price at which the firm’s stock was initially offered and the stock’s closing price on the first day of trading. The author is trying to examine the effect of several variables used in this study with the underpricing phenomenon. Five types of independent variables consisting underwriter quality, company size, PER, net income growth, and total shares listed are used in this study. Company who occurred the underpricing phenomenon during their Initial Public Offering in Indonesian Stock Exchange for period 1999 -2007 are used as a sample in this study. The sampling method used in this study is non probability sampling with purposive technique. This study also used the secondary data which is consist the company’s prospectus and closing stock’s price on the first day trading. The result of this study conclude that variables such as the company size, net income growth, and total share’s listed was found affected the underpricing phenomenon. But the others variable like underwriter’s quality and PER was having no effect with the underpricing. |