China AI Startup to File for Hong Kong IPO Soon Despite Protests

Chinese artificial intelligence startup Megvii is filing documents soon for a Hong Kong initial public offering that could raise as much as $1 billion, people familiar with the matter said, proceeding despite a market downturn spurred by pro-democracy protests across the financial hub. The owner of facial-recognition platform Face plans to submit an IPO filing to the Hong Kong Stock Exchange as soon as Friday, one of the people said, asking not to be named because the matter is private. Megvii is moving forward even as other companies pump the brakes on their Hong Kong listing ambitions, wary of months of protests that have gripped the city. Alibaba Group Holding Ltd., a backer of Megvii's, is among those that are gunning for a Hong Kong listing but have held back to gauge investors' reception. Megvii's offering may face particular challenges.