Differences in Initial IPO Returns During and After the Pandemic in Indonesia

Abstract

This study analyzes differences in initial return (underpricing) levels among IPO companies on the Indonesia Stock Exchange during the COVID-19 pandemic period (2020–2022) and post-pandemic period (2023–2024). A quantitative approach with a comparative design was used, involving 235 IPO companies selected through purposive sampling. Data were obtained from financial reports and prospectuses, then analyzed using the Mann-Whitney U test and descriptive analysis. The results showed an average initial return of 27.20% during the pandemic and 22.54% in the post-pandemic period. The Mann-Whitney U test produced an Asymp. Sig. (2-tailed) value of 0.166 > 0.05, indicating no significant difference between the two periods. These findings indicate that the stock market and investor response to IPOs in Indonesia remained stable despite changes in macroeconomic conditions due to the pandemic. The implications of this study highlight the importance of pricing discipline and information transparency for market participants and regulators in maintaining capital market efficiency. They can serve as a reference for investment strategies and policies during periods of economic uncertainty.