An information technology spin-off from the prestigious Shanghai Jiao Tong University plans to raise net proceeds of HK$66 million by listing on the Growth Enterprise Market (GEM). Shanghai Jiaoda Withub Information Industrial will place 132 million shares at 66 HK cents each. Of these, 120 million will be new shares and the remainder existing shares. Of the proceeds, HK$28 million will be allocated to sales and marketing, HK$10 million to research and development, HK$10 million to enhancing production facilities, HK$3 million to product development and another HK$3 million to repay short-term loans. The remaining HK$12 million will be used as general working capital. Jiaoda Withub made a profit attributable to shareholders of 2.64 million yuan (about HK$2.5 million) for the year to December 31 last year compared with a loss of 7.65 million yuan in 2000. Last year's profit equated to earnings per share of 8.1 fen. Turnover was boosted 183 per cent to 102.43 million yuan last year. The stock will begin trading on the GEM on Wednesday. Tai Fook Capital is the sponsor of the listing and the joint lead managers are Tai Fook Securities and Guotai Junan Securities. Jiaoda Withub has focused on providing business solutions for organisations with sensitive data processing such as government departments, courts and schools. It has also identified social security as a high growth market. Jiaoda Withub chairman Professor Xu Xiaoming said: 'Effective protection from external network attacks, safety guarantee of internal information, ability to leverage on information technology advantages as well as enhancement of management efficiency have become the biggest concerns of information technology management among all governmental departments and corporations.'