UPDATE 2-Rosetta Stone IPO prices above estimate range

* Shares price for $18, above the range

* IPO raises $112.5 million

* Fourth IPO of 2009, 3rd in April

(Adds analysts' comments, byline)

By Phil Wahba

NEW YORK, April 15 (Reuters) - Rosetta Stone Inc (RST.N) shares priced at $18 in the company's initial public offering, above the estimate range, a source with direct knowledge of the deal said on Wednesday, making it the fourth IPO on a U.S. exchange in 2009 as equities markets struggle to stabilize.

Rosetta Stone sold 6.25 million shares, raising $112.5 million, after shares priced above the estimated $15 to $17 range, the first IPO to do so since pumpmaker Colfax Corp's (CFX.N) deal in May 2008.

Investors' embrace of Rosetta Stone stands in contrast to the reception given Tuesday to college operator Bridgepoint Education Inc (BPI.N). which had to shave 30 percent off its estimated price to get its IPO to the market.

Analysts believed that Rosetta's success was due to a lack of publicly held competitors.

"They have brand strength -- nothing compares to Rosetta Stone, everyone has seen their ads," said Ben Holmes, publisher of research and analytics firm Morningnotes.com.

"The college space is becoming very competitive, but Rosetta Stone is in a very uncrowded space," Holmes said.

Rosetta Stone's chief rival, Berlitz, is privately held.

The relatively small size of the deal's "float", or the number of shares sold, helped Rosetta Stone command a strong price, though analysts said the company could have raised far more money in the oversubscribed deal.

"They left money on the table, but institutions and its retail clientele will remember that, and when Rosetta Stone comes back for a follow-on, they'll be amenable," said Scott Sweet, senior managing director of research firm IPO Boutique.

EFFECTIVE ADS

Rosetta Stone, which provides language instruction services to individuals, companies and schools primarily through CD-ROMs, has attracted attention through an advertising campaign that has featured U.S. Olympic swimming gold medal swimmer Michael Phelps.