Hollywood actresses Jessica Alba, Gwyneth Paltrow and Kate Hudson are set to conquer the Wall Street. While some successful companies have made its founders as celebrities, there are only a few companies that have been taken public by a-list stars.

It has been quite a shaky market for tech IPOs and most technology companies have avoided public markets. But Alba's natural and eco-friendly Honest Company, which was initially started by CEO and co-founder Brian Lee in 2012, is planning to test it out. As a matter of fact, the natural-baby products empire is working on a deal to go public at a $1.7 billion valuation.

Since 2014, Lee has been discussing his interest in taking the company public. According to New York Post, Honest Co. has been assertively seeking funding. Luckily, the company raised $70 million in a funding round that valued it at $1 billion in August.

According to the people who are familiar with the matter, Alba's online shopping startup is working with Goldman Sachs Group Inc. and Morgan Stanley on an initial public offering. And since the plans are private, spokespeople for Honest Co., Goldman Sachs and Morgan Stanley refused to comment on the deal.

Alba, 34, helped the eco-friendly company in 2011 on its expansion from selling natural baby products to home cleaning and beauty items online and in stores, such as Target Corp. and Whole Foods Market Inc. However, Honest Co. became a target of a class-action lawsuit last year, claiming its products were deceptively labeled and contained unnatural ingredients, Bloomberg noted.

Paltrow's lifestyle brand GOOP, on the other hand, has also been exploring to ways to expand. And though the 43-year-old actress couldn't rule out an IPO, she admitted that initial public offering for her aspirational lifestyle website is quite a "little far off."

Meanwhile, Hudson's athletic wear brand Fabletics might follow Alba's Honest Co.'s IPO plans. In fact, JustFab CEO Adam Goldenberg said that the company raised $85 million in a 2014 "pre-IPO round." JustFab is the company that owns Fabletics.

Despite having backers such as Fidelity Management & Research Co., General Catalyst Partners, Lightspeed Venture Partners and Wellington Management, some market observers are still quite skeptical about an Honest Co. IPO, citing the fact that no companies went public last month.

"Maybe having a Hollywood star attached to your company overcomes all this stuff that no one else can overcome," tech IPOs-centered New York firm Triton Research CEO Rett Wallace said. "But what's their competitive advantage and defensible position in the baby powder business?"

January became the slowest month for IPOs since the financial crisis. That's why, companies were prompted to either scrap or postpone their deals. But this month might change the tides as two biotechnology companies have already braved the market and go public, Market Watch has learned.