RPT-IPO VIEW-Bridgepoint, Rosetta may benefit from IPO warm-up

(This is a repeat of a column originally transmitted on April 9)

By Phil Wahba

NEW YORK, April 9 (Reuters) - Two planned initial public offerings next week could get a lift from investor interest in the recession-resistant education sector and a smattering of successful U.S. IPOs, provided the deals are priced properly.

Rosetta Stone Inc (RST.N: Quote, Profile, Research), the language instruction provider, and for-profit college operator Bridgepoint Education Inc (BPI.N: Quote, Profile, Research) are set to price their IPOs next week, following last week's successful $120 million deal by Chinese video-game maker Changyou.com Ltd (CYOU.O: Quote, Profile, Research), just the third in eight months to successfully come to market.

Along with Changyou.com, last November's stock flotation by Bridgepoint rival Grand Canyon Education Inc (LOPE.O: Quote, Profile, Research) and February's $828 million IPO by pediatrics nutrition maker Mead Johnson Nutrition Co (MJN.N: Quote, Profile, Research) are all trading 15 percent above their offer prices, on average.

"Investors have been rewarded because they are solid businesses, priced attractively," said Paul Bard, a research director at Connecticut-based Renaissance Capital, an investment manager that specializes in IPO stocks.

"The market is opening up for companies with good stories and resilient businesses demonstrating growth -- you have that in both these two deals," Bard added, referring to Rosetta Stone and Bridgepoint.

Renaissance Capital's IPO index is up 5.9 percent so far this year.

Rosetta Stone, known for its ad campaign featuring U.S. Olympic gold medal swimmer Michael Phelps, is gunning for a $100 million IPO, while Bridgepoint, owned mostly by private equity firm Warburg Pincus [WP.UL], estimates it will raise $203 million.