Ark revives flotation plan

BRITAIN'S biggest privately owned biotech group Ark Therapeutics has revived plans for a London stock market flotation after pulling out of a £140m float over a year ago.

Ark, which has a device for treating ulcers and is developing treatments for malignant brain tumours, hopes to come back to the market to raise up to £40m in cash. Market sources say it is in talks with advisers West LB Panmure and Nomura Securities.

Ark's last float attempt was abandoned 16 months ago after a sudden deterioration in stock markets.

Ark chief executive Nigel Parker then blamed the 'whole sentiment in the market', saying: 'We decided it was unwise to go ahead.'

There have since been no biotech flotations, though other pulled floats have been revived - including Punch Taverns and Yell!

There have also been recent signs of an upturn in new listing activity. Tomorrow intellectual property group I2IPO starts trading and later this week, despite a float clouded by a lawsuit, Wolfson Electronics is due to be priced, with its shares likely to start trading next week.

The upturn in IPO activity coincides with the sudden pick-up in the stock market's fortunes. Since the end of the Iraq war the market has risen more than 1100 points to close last night at 4331.9, only 30 points off 2003 highs reached earlier this week.

RHM, the former Rank Hovis McDougall, DIY chain Focus Wickes and Irish drinks group Cantrell & Cochrane are all believed to be waiting on the sidelines.