Green Future (GF), a green technology company conducted its Initial Public Offering (IPO) on January 20, 2020. GF sold 25 million shares for an IPO price of RM1.80 per share. GF closing price was RM2.70 after the first day of trading and RM3.00 after a month of trading. However, once the COVID-19 reaches the country, the company suffers a decline and its stock price after the third month of listing was RM2.50.

Alesio and Simon, both experienced market traders, were among the successful applicants for the IPO. Alesio managed to secure 20,000 units of shares while Simon secured 10,000 units. Both took advantage of the underpricing of the stocks on the first day of trading with Alesio selling half of his ownership while Simon sold all his stocks at once. Alesio was satisfied with the remaining stocks and wanted to hold the stocks at least until the first dividend received at the end of the year. Simon was more aggressive and had a different strategy. A month after its listing on Stock Exchange, Simon anticipated a decline of GF stocks given the outbreak of COVID-19 in China and several other countries. Simon approached Alesio and borrowed 10,000 units of GFs stock to short sell the stocks. They engaged in a contract stipulated that Simon would have to pay RM5000 for the contract itself and must return the stocks on the third month after the stock listing. Assuming no commission fees and tax, determine the following :

a) Calculate total proceeds of GFs IPO assuming full subscription.

b) Calculate the percentage IPO underpricing for GF based on first day trading.

c) Determine the profit (loss) for both Alessio and Simon after their activities on the first day of trading assuming they are selling at the closing price of RM2.70.

d) Determine the profit (loss) of Simon stock selling activity.

e) Calculate market capitalization of GFs stock after the third month of listing.