This research aimed to examine whether Indonesian companies do initial public offering to fulfill the funding based on market timing theory. Market timing theory said that the companies which want to publish a new stock in high price (overvalued) and repurchased on low price (undervalued). In this research used capital structure as a dependent variable and net equity issue as a independent variable, in addition there was a control variable such as tangibility asset, size, profitability and book leverage. This research used cross-sectional data with 135 samples of non-financial companies that do initial public offering (IPO) in Indonesia during 2010-2017. The result of this research shows that market to book ratio has a negative effect on capital structure and market to book ratio has positive effect on net equity issue. Based on this result, the companies in Indonesia uses market timing theory as an external funding.