Beauty company Coty Inc. has selected Bank of America Merrill Lynch and JPMorgan Chase & Co to be the lead underwriters for a planned initial public offering this autumn, a person familiar with the matter told Reuters.

The IPO would value Coty, known for fragrances for Madonna and Playboy, at more than $7 billion, the source said, adding that the company would file its S-1 prospectus "soon."

Coty declined to comment, as did Bank of America and JPMorgan.

Coty on Monday withdrew its $10.7 billion unsolicited offer to buy larger rival Avon Products Inc, faulting what it said was the direct seller's "unwillingness" to sit down for talks.

Fragrances accounted for 57 percent of Coty's $4.1 billion in sales in its year ended June 2011. The bulk of its sales come from Europe and North America.

CNBC first reported the news that Coty had picked underwriters.