E-cigarette maker NJOY Holdings has hired bankers to sell the company, The Wall Street Journal reported Tuesday, citing people familiar with the matter.

The report added that privately held NJOY could be worth as much as $5 billion, a process that, according to sources, is still in the early stages and there is no guarantee that a deal will materialize.

If NJOY doesn't get a high enough valuation, the company could raise capital and stay private, which could pave the way for future IPOs, the WSJ said.

The e-cigarette maker is simultaneously exploring a new funding round with a goal of raising between $300 million and $500 million, the report added.

NJOY and the company's majority shareholder, Mudrick Capital Management, did not immediately respond to Reuters' requests for comment.

In late June, Bernstein analyst Callum Elliott wrote in a report that Altria may try to acquire privately held NJOY, which has already had success with its PMTA (premarket tobacco product application) process applications.

Rival Juul Labs Inc said on Friday it was in the early stages of exploring options, including financing alternatives, as the company grapples with lawsuits and a possible ban by U.S. health regulators from the sale of its e-cigarettes.