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Underpricing continues to be a prominent issue within the Indonesian capital market, as many firms conducting an Initial Public Offering (IPO) tend to set initial share prices below their subsequent market value. This research investigates the moderating role of underwriter reputation in the relationship between profitability, financial leverage, and earnings per share (EPS) on IPO underpricing among firms listed on the Indonesia Stock Exchange (IDX). Utilizing a purposive sampling technique, the study analyzes data from 176 companies. The data are processed using Moderated Regression Analysis (MRA) with the help of STATA software. The findings reveal that profitability, measured by return on assets (ROA), significantly influences underpricing. In contrast, financial leverage (proxied by the debt-to-equity ratio) and EPS show no statistically significant effect. Moreover, underwriter reputation is shown to moderate the negative impact of both ROA and EPS on underpricing but does not moderate the relationship between the debt-to-equity ratio and underpricing. These results offer valuable insights into signaling theory and information asymmetry, highlighting the importance of firm fundamentals and intermediary reputation in IPO pricing strategies. The study contributes to a better understanding for investors, issuers, and regulators involved in the IPO decision-making process.

Underpricing merupakan sebuah fenomena initial public offering yang sering terjadi di pasar modal dan telah dibuktikan oleh para peneliti. Penelitian ini bertujuan untuk menganalisa pengaruh current ratio, return on asset, debt to equity ratio, reputasi undewriter dan jenis industri terhadap underpricing. Metode sampling yang digunakan adalah purposive sampling pada sampel perusahaan yang melakukan initial public offering (IPO) yang terdaftar di Bursa Efek Indonesia selama periode 2020-2021.  Metode penelitian yang digunakan adalah Analisis Regresi Linear Berganda, dengan bantuan Microsoft Excel dan Eviews9. Dengan hasil penelitian menunjukkan bahwa secara simultan current ratio, return on asset, debt to equity ratio, reputasi undewriter dan jenis industri mempengaruhi underpricing sebesar 55.35%. Secara parsial current ratio berpengaruh negatif terhadap underpricing sebesar 0.0480 < 0.05 dan debt to equity ratio berpengaruh positif terhadap underpricing sebesar 0.0002 < 0.05, sedangkan return on asset, reputasi undewriter dan jenis industri tidak berpengaruh secara signifikan terhadap underpricing.