Mindbody, a company that makes software to help run fitness and yoga studios, has selected banks for a potential initial public offering that could value it at more than $700 million, according to people familiar with the matter.

The company, based in San Luis Obispo, California, is working with banks including Morgan Stanley, Credit Suisse and UBS on the potential offering, which could come in the second or third quarter, these people said.

The sources asked not to be identified because the matter is not public. Representatives for Mindbody, Morgan Stanley, Credit Suisse and UBS declined to comment.

Founded in 1998, the company makes business management software for wellness and fitness boutiques and has since expanded to spas and beauty salons. Its customers pay a monthly fee to use the software, which serves more than 40,000 businesses in 100 countries, according to its website.

It has raised more than $100 million in funding with backers such as W Capital Partners, Bessemer Venture Partners, Catalyst Investors and Institutional Venture Partners.