In the past three years, the number of IPOs in Indonesia has been on the rise. Unfortunately, around two-fifth of those IPO firms could not sustain their positive initial return beyond the first few months. When analyzing stock return performance, few researches focus on stock performance of IPO companies beyond the initial return as well as information provided on the prospectuses while, for investors, prospectuses can possibly be the only source of information prior to the IPO listing. For these reasons, the purpose of this research is to examine the effect of the firm’s age, debt-to-asset ratio, price-to-book ratio, return on equity, IPO size, public ownership percentage and market return on the IPO stock return and whether industry sector affects IPO stock return. The subject of the research is all firms going public in 2010-2019 at Indonesia Stock Exchange. Purposive sampling is used to select the sample for the research which consists of firms which had been trading in the stock exchange for a period of 100 trading days prior to the release of the annual statement, while the data will be collected through secondary data method. The proposed hypotheses are analyzed by cross-sectional regression analysis.The result of this study shows that only IPO size and public ownership percentage have negative significant effects on IPO stock return, while other independent variables do not have any effects towards the stock returns for companies going public in 2010 – 2019 in Indonesia. From the result, in general, it could be assumed that investors, when deciding to purchase IPO stocks, do not really pay attention to pre-IPO financial performance such as DAR, ROE and PBV, and focus mainly on the IPO characteristics.

Keywords: Initial Public Offering, Stock Return, Financial Ratios, IPO Characteristic, IPO Size