Coty's IPO Would Be Prettier Than Facebook

NEW YORK (TheStreet -- In the frenzy generated by the huge Facebook (FB) IPO, the solid value of another potential IPO is getting lost.

True, Facebook has hundreds of millions of users, and lots of cool features. But there's an argument to be made that the company is already overpriced with an initial market capitalization of more than $100 billion and nobody quite knows how to fully monetize the behemoth network.

Meanwhile, there is the relatively unsung Coty, whose likely eventual offering shines brightly with expectations of solid growth and profitability.

Coty would not comment on whether it's planning on going public and nothing has been filed as of yet. The signs are there though. According to a Wall Street Journal report, the company has already quietly selected bankers to serve as underwriters.

Despite the recent headlines the company has made with its bid to acquire Avon Products (AVP) for $10.7 billion, Coty frequently flies under the radar because few people realize how big the company is and what powerful brands it controls.

Coty has two divisions: Coty Prestige houses names like Calvin Klein, Nautica and Kenneth Cole while Coty Beauty contains Sally Hansen, Beyonce and Halle Barry. Since it's a private company largely owned by a wealthy German family, little is known of its operating numbers.

The company's most prominent products are likely its celebrity fragrances, like Jennifer Lopez's various scents which have sold more than $1 billion at retail. This fall, Coty plans to launch a new perfume from Lady Gaga. In 2010, Coty purchased OPI nail polish and Philosophy skin care, both potent sellers, for less than $1 billion each.

In order to enter the lucrative Asian market, Coty spent $400 million to take a majority stake in TJoy in late 2010. That was a bold and smart step in the cosmetics business. Just consider the potential of the world's largest commercial market, active with new consumers anxious to look and feel better cosmetically.

So here we have a global company that is believed to be delivering double-digit growth on the top line. This is an offering that should drive investors to a frenzy.

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