Shares of Unity Software, which provides technology to video game developers, advanced as much as 48 per cent in their public debut on Friday, lifting the valuation of the company briefly above $20bn Its stock rose as high as $76.79 in early trading after the company sold 25m shares at $52 a piece, raising $1.3bn in proceeds. Unitys shares, which trade on the New York Stock Exchange slipped from their early highs and ended the day up 31 per cent. The trading debut came after Unity increased the range marketed to investors from between $34 and $42 per share to between $44 and $48 per share on Wednesday, reflecting strong demand for its offering. The company estimates that half of the top 1,000 mobile games on Apples App Store and Google Play were made using its platform, which has expanded to help game developers make money from advertising. The business made a net loss of $163.2m on revenues of $541.8m last year, which grew 42 per cent from the previous year. The IPO comes after Snowflake raised $3.4bn in the largest-ever US listing of a software company. Shares in the company doubled on its trading debut on Wednesday, reflecting the bumper demand for technology stocks this year. Shares in JFrog, an Israeli software company which also listed on Wednesday, jumped 47 per cent.

(a)As the extract from the article shows, in September 2020 Unity Software had an IPO with a selling price of $52. Find the share price at the end of the first trading day and one month, three months and six months later. Use the share price information in answering the following questions.

(b) Discuss the additional problems which can arise when trying to value new issues of shares, such as that for Unity Software.

(c) Critically evaluate the view that the large movements in prices for Unity Software shares in the first six months of trading undermine the relevance of the dividend valuation model and the concept of market efficiency.