Abstract

This study aims to analyze the effect of gross proceeds, company size, profitability, and leverage on share issuance costs in 164 companies conducting Initial Public Offerings (IPOs) in Indonesia during the 2022–2024 period. The results of a multiple linear regression analysis based on cross-sectional data indicate that gross proceeds and company size have a partial negative effect on new share issuance costs. This confirms the evidence supporting findings in other countries that company size and IPO size determine the size of issuance costs. However, a significant positive correlation between company size and IPO size causes the two to cancel each other out during the multiple regression analysis. Large companies and large IPO sizes reduce the percentage of share issuance costs. Profitability levels and leverage levels in the final year before the IPO do not affect the size of issuance costs.

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