Entropia Universe is set to be the first virtual world to seek a real-world share listing after its creator, MindArk, announced its intention to go public yesterday.

The Gothenburg-based company - which has attracted 650,000 players to Entropia Universe since its launch in 2003 - is expected to list in London in the third quarter of next year.

In May it beat rival Second Life to a contract to create a cash-based virtual economy for China. The network is expected to handle 7m users at one time and enable $1bn a year in ecommerce.

Entropia currently turns over $1m a day and MindArk says it has been profitable for the past 14 quarters.

Its annual report for 2006 shows net sales more than doubling to SKr59m ($9.3m) from SKr28m in 2005.

In Entropia, players create avatars, build communities and explore and exploit the planet Calypso. MindArk does not charge a subscription fee but makes money from players buying assets and objects in the world.

Virtual entrepreneurs have also made real-world money through commerce in Entropia, whose PED currency converts at the rate of 10 to $1. Players can use real-world ATM machines to withdraw their money.

Credit Suisse is advising MindArk on its IPO.