Based on the perspective of regional financial density, this paper studies the impact of geographical location on the IPO underpricing of listed companies. Theoretically, based on asymmetric information theory and asymmetric information hypothesis, the paper finds that the higher the employment density of financial industry in listed companies, the lower the IPO underpricing of listed companies. Empirically, this paper selects 820 IPO companies in A-share market in China from 2006 to 2016 as a sample, and constructs a multiple regression model. Through empirical analysis, it is found that there is a significantly negative correlation between geographical location and IPO underpricing of listed companies, that is, the rate of IPO underpricing of listed companies in high financial density areas is significantly lower than that in low financial density areas.