(Bloomberg) — Chinese hotpot ingredients supplier Guoquan is weighing an initial public offering as soon as next year, according to people with knowledge of the matter.

IDG Capital, one of the company’s major backers, has held preliminary discussions with banks on the potential offering, which could raise $400 million to $500 million, the people said. The company hasn’t decided on a listing venue but Hong Kong is among the destinations being considered, said the people, who asked not to be identified as the information is private.

Founded in 2017, Guoquan sells pre-packaged hotpot ingredients and condiments at its retail shops as well as via online platforms such as Meituan Dianping, according to its website. The company runs 3,600 shops across China and aims to increase the number to 5,000 by the end of this year. It also supplies ingredients to restaurant chains.

Last month, Guoquan raised $60 million in a