The company wants to sell about a quarter of its shares on London's Alternative Investment Market.

The flotation is planned for Friday, 4 June, and shares will be sold for £2 each.

The company hopes to raise about £25m ($40m).

Searching for existing domain names made easy

Managing Director Jonathan Robinson said: "We have come in with a valuation that reflects the fact we are going to grow but which has got no hype in it."

Mr Robinson believes that it is a good time to float, despite the recent unpopularity of Internet stocks on the Nasdaq market in the United States.

He said the market was still hungry for Internet and high-technology stocks, and had woken up to the importance of the little-understood field of Internet names.

NetBenefit is one of 34 companies world-wide that have been granted the right to register domain names on the Internet, such as .com, .co.uk, .org and .net.

They take over US company Net Solutions which held the monopoly on registering Internet names.