12/12/2007 (Reuters), London - Papua New Guinea's largest palm oil producer, New Britain Palm Oil, said on Wednesday it plans to list in London and raise 88.9 million pounds ($182 million).

The firm hopes to benefit from a near doubling in the price of palm oil in the last year, driven by demand for biofuels and economic growth in China and India. Palm oil is also used for cooking and in products such as soap and ice cream.

New Britain Palm Oil (NBPOL) aims to place 25 million new shares at 250 pence per share, raising 62.5 million pounds after commissions and expenses.

The share placing, which is being underwritten and is the first float of the UK Capital Markets division of broker Kaupthing Singer & Friedlander, will value NBPOL around 362 million pounds.

"The London listing signifies the start of the next major phase of development of NBPOL as we target the doubling of the company's current plantation area in seven to eight years," said NBPOL Chief Executive Nick Thompson.

The company, which has 40,000 hectares of palm oil plantations and a refinery, will use the proceeds to accelerate its planting and build infrastructure.

NBPOL said it is focused on sustainable plantations and is a member of producer association the Roundtable on Sustainable Palm Oil. Its palm oil is used in lotions, bath oils and soaps sold by the Body Shop, the business set up by environmental pioneer Anita Roddick, who died this year.

The Roundtable is working to improve the industry's green credentials by defining what counts as "sustainable" palm oil production and certifying operations that meet the criteria.

It follows criticism that the high price of palm oil has encouraged deforestation of the rainforests, causing extra carbon dioxide emissions as soil peat is disturbed.

The shares are expected to start trading on Dec. 17 under the market code NBPO.L.