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So I recently started the game and I'm at the point where I can start putting points into my THM.
I know I should be putting points into INT, but where should my other points go to maximise both magic damage and accuracy?
Also what do the stats do specifically in relation to magic damage? Is there a concrete damage formula worked out?
I'm not an expert. Just come back to the game recently myself.
But from what i've read, INT first, then PIE.
PIE helps with enfeebling spells, mainly sleep, and also boosts MP. MND does increase Magic Accuracy, but actual Magic Accuracy + from gear will do better than MND.
INT and Magic attack potency are what you need for spell damage. There is also gear/materia that increases specific elemental magic power. As stated, PIE improves enfeebles/MP and MIND helps with magic accuracy.
INT > PIE > MND
I would suggest going INT > MND and just forget about the PIE. INT is obviously first since it affect directly your damage. MND is for magic accuracy which is important because you want to land those spells and not get resisted and if I understood correctly, m.acc is also the prime stat for landing sleep/sleepga and PIE affects only debuffs like blizzard's heavy etc. which I wouldn't see as that important.
Sleep is only affected by Magic Accuracy. It's a common misconception that Enfeebling skill boosts Sleep, but that is not the case and merely something that FF11 players are used to.
Enfeebling skill (and essentially, Piety) boosts the success rate and potency of secondary effects like Hirmu stated. Things like Blizzard's Heavy effect, Blizzara's Bind effect, and Flare's Damage over Time effect. I personally feel that kind of stuff is important as reliable binds are really helpful in specific situations and having reliable DoT from Flare just adds even more "hate-free" damage. That said, Magic Accuracy is also extremely important as spells must land unresisted in order to combo, which is where most of your damage lies.
Honestly, the points from level up aren't going to change your stats around too much. You can split them around between INT/MND/PIE like I did and you will do perfectly fine. If you are going to cap out two, I would personally say INT and PIE, though, as INT is important enough and Enfeebling Skill is much harder to gear up for, whereas there's a ton of gear with Magic Accuracy and Magic Accuracy food that you would most likely be using anyway in any situation where there is a chance you will get resisted.