(Bloomberg) -- Babycare, a Chinese maker of products for young children, is exploring an initial public offering in Hong Kong, according to people familiar with the matter.

The Hangzhou-based company has held early discussions with potential advisers, the people said, asking not to be identified as the information isn’t public. A first-time share sale could happen as soon as 2023 and could raise about $300 million to $500 million, one of the people said. The company was valued at roughly $3 billion in its last round of financing, they said.

Deliberations are ongoing and details of the offering such as size, venue and timing could change, the people said. Babycare didn’t immediately respond to requests for comment by phone and email.

Babycare, whose Chinese name translates as “white shell”, offers designs that appeal to members of Gen Z who are becoming parents. The company sells its goods in more than 30 countries and serves about 45 million families, according to its website. The firm’s products include clothing, diapers, strollers and mosquito repellent. Its backers include CDH Investments and Huaxing Growth Capital.

China desperately wants its people to have more babies as its population is set to shrink by more than 260 million over the coming three decades, research by Bloomberg Intelligence shows. The maternity and childcare products industry in China could surpass 7 trillion yuan ($1 trillion) by 2024, according to Statista.

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