Megvii Technology Limited which is backed by Alibaba Group Holding Limited (NYSE:BABA) is considering an Initial Public Offering (IPO) in Hong Kong that could net as much as $1 billion, people familiar with the matter said. Megvii is weighing an IPO to raise between $500 million and $1 billion with Hong Kong as a destination, the people said, requesting not to be named because the matter is private. Deliberations are at an early stage and no final decision has been made as the details of the plans could still change, the people said. “We are considering many options to raise funds but have not committed to a final plan," Xie Yinan, a spokesman for Megvii, said in a text message.