Rosetta Stone: IPO Market Continues Activity

Apr.16.09 | About: Rosetta Stone (RST)

The IPO market continues to heat up with the Rosetta Stone (NYSE:RST) IPO pricing at $18, above the expected range of $15 - 17, raising $112.5 million. The relatively small size of the float, combined with a lack of publicly traded competitors allowed the company to command a higher price. It begins trading Thursday under the ticker RST on the NYSE. Rosetta Stone is a leading provider of technology based learning language instruction solutions that consists of software, online tools and audio / visual tools.

According to the regulatory filing, Rosetta’s revenues rose 52% last year to 209.4 million over 2007. In 2005 the company reported revenues of $48 million, jumping to $90 million in 2006 so this is a company with tremendous growth in the past few years. In 2007 the company moved its headquarters to Arlington, VA, expanded into international markets, hired 60 employees at headquarters and recently began rolling out high profile ads featuring Michael Phelps in preparation for the IPO.

Disclosure: No position