Chinese photo app developer Meitu filed an application with Hong Kong regulators on Friday for an initial public offering (IPO) that could raise between $500 million to 1 billion, insiders told the Wall Street Journal (WSJ).

The Wall Street Journal added that Meitu's IPO is expected in the fourth quarter, and said it will serve as a litmus test on whether the Hong Kong market can compete with other markets in New York and the Chinese mainland for a wave of expected Chinese startup offerings.

Meitu, established in 2008 in the southern Chinese city of Xiamen,is one of China's most popular "selfie" app developers. According to the company's official website, over one billion mobile devices worldwide have one of its apps installed. The company ranked eighth among global app developers with Tencent, Google and Facebook taking out the top three spots, according to app data provider App Annie.