The self-study language tutorial company Rosetta Stone Inc. plans to go public via an initial public offering. The company has not listed any amount in shares or any indicated prices, but for filing purposes it showed a sale of as much as $115 million in securities. The underwriting group is rather large: Morgan Stanley, William Blair, Jefferies, Piper Jaffray, and Robert W. Baird.
The company has grown revenue from the predecessor’s $15.5 million in2003 to $137.3 million in 2007. The filing says this represents a73% compound annual growth rate which the company says is entirelyorganic.
This is a private equity-backed IPO. Entitiesaffiliated with ABS Capital Partners own 46.1% and Norwest EquityPartner entities own 30.1% of the company. It has applied to take the stock ticker "RST" on the New York Stock Exchange.
Jon C. Ogg
September 23, 2008