Sex always sells, and it sells like hot cakes in times of economic gloom, according to the owners of an Australian brothel who plan to make it the first publicly listed brothel.

Andrew Harris, director of the Daily Planet in Melbourne, who launched a prospectus at its premises in Horne Street, hopes investors, some of whom are expected to be clients, will stump up 12m Australian dollars (£4.2m) to fund a sister establishment in Sydney that will include a table-top dancing business.

The Daily Planet prides itself on its high-class clientele and describes itself as "like any other five-star hotel" – although rooms can be hired by the half-hour. Its brochure promises hospital-standard hygiene, noting that "all sex workers are required by law to use condoms and/or dental dams during sexual activity".

Brothels are legal in Australia, but must be licensed by state governments. The Daily Planet, which has 18 rooms, claims to be the country's largest legal establishment.

Mr Harris denied it was a foolhardy time to sell shares, recalling that the brothel did a roaring trade during a recession in 1988. "In hard times, people seek companionship and company," he said. "I can't think of a better time to go to the market."

Mr Harris and his partner, John Trimble, plan to sell a 48 per cent stake and list on the Australian Stock Exchange this year. They predict annual returns of at least 10 per cent.