Depa, a Dubai-based interiors contractor working on the world's tallest building, is to raise up to $516 million (£260 million) this month in a dual London and Dubai stock market listing, the first equity fund raiser the London Stock Exchange has enjoyed this year in the construction sector.

The flotation of Depa, which is fitting out apartments in the Burj Dubai, was priced today at between $1.50 and $1.85 per share and between $7.50 and $9.25 per global depositary receipt which would value the company at up to $1.2 billion.

The decision by Depa to have a dual listing in London will boost the standing of London as an international financial centre. It has been damaged over the past few months by a series of changes to taxation law under the Gordon Brown's new Labour regime.

Nakheel, the Dubai property developer behind the man-made Palm and World Islands, is working on an $800 million flotation of part of its $60 billion property portfolio as a real estate investment trust with a primary listing in Dubai and a secondary listing in London or Singapore, The Times revealed last autumn.

Mohannad Sweid, the chief executive of Depa, told The Times that he still considered London as the financial stock exchange for a property company to list if it had international ambitions.

Property companies in the UK and the rest of Europe have seen their share prices fall by between a half and three quarters over the past year as a combination of the credit crunch and worries over the occupational market has hit the price of shops, offices and warehouses and new work on new developments has slowed.

The construction boom has however continued in the United Arab Emirates on the back of an economy flush with a five-fold increase in oil prices over the past six years.

Depa's net profit last year rose 72% to 160.5 million dirhams (£22 million), on contract income up 35.5 per cent to 1.42 billion dirhams. The company 15 countries through 22 subsidiaries in the middle east, far east and north Africa but Mohannad Sweid, its chief executive said he plans to open for business in two or three more countries this year.

The flotation is being handled by Morgan Stanley, UBS, the National Investor — a finance house with a 20 per cent stake in Depa — and Global Investment House of Kuwait. Depa is taking legal advice from Allen & Overy, the City based legal giant with a growing middle east presence.

In 2005 Depa won a $163 million contract to fit out apartments in the Burj Dubai project developed by Emaar Properties and which includes the world's tallest building. The lower 37 floors will house the world's first Armani hotel. There are 700 private apartments and residents will be able to swim in an outdoor pool on the side roof of the 78th floor.

The Burj Dubai is already 159 stories, stretching to 604.9 metres high, but the final height is being kept a closely guarded secret. The top floor will contain "something special" Mr Sweid told The Times, but no clues have yet been given as to whether it will be one huge luxury apartment, a restaurant or a public space.

Depa fitted out Dubai's Burj al-Arab, a hotel built on a man-made island just off Dubai's coast and constructed is in the shape of a sail.

Last week Depa won a 375 million dirham contract to fit out metro stations in Dubai in a joint venture with Germany's Lindner Group.

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