Consider the following information obtained from a prospectus of an IPO dated 26 October 2020. MR D.I.Y. Group (M) Bhd.

KUALA LUMPUR: MR D.I.Y. Group (M) Bhd., the country's largest IPO this year, made its debut on the Main Market of Bursa Malaysia at RMI .60, which is its offer price. At 9.03am, share of the home improvement retailer was trading at RMI .61. There were 49.78 million shares done at prices ranging from RMI .50 to RMI .62. The FBM KLCI was up 2.38 points or 0.16% to 1 ,497.02. Turnover was 381.90 million shares valued at RM222.28mil. There were 301 gainers, 105 losers and 283 counters unchanged. MR DIY raised RM1.5bil from the market. Its IPO comprised up to 941.49 million shares an offer for sale of up to 753.09 million existing shares and a public issue of 188.40 million new shares.

Required:

a) Extract the important information that can be obtained from the above statement. (7 Marks)

b) Why does IPO under-pricing tend to occur? (3 Marks)