China Pacific Insurance, the country's third-largest insurance firm, and National Social Security fund, China's pension fund, are looking to jointly raise up-to HK$25.93 billion ($3.3 billion) in a major Hong Kong shares sale which could be the city's second-largest float this year.

Both the groups are together offering as many as 861.3 million shares at a per share price ranging from HK$26.80 to HK$30.10. The float will reportedly be made up of 90.9% new shares from the insurer and rest will be offered by the fund.

As compared to its two biggest national competitors, based on estimates drawn via embedded value by banks involved in the sale, the issue values China Pacific at about a 27% discount.

"That’s a reasonable price range. China Pacific’s premium growth should pick up in 2010 after the company has almost completed structural adjustments. The stock market should also do well, boosting investment returns", said Qiu Peng, a Shanghai-based investment manager at Western Securities Co.

The renowned insurer had also seen tough times because of the global recession, but has lately managed to make good profits. The company's third-quarter report revealed a profit of 1.7 Billion Yuan, a substantial improvement from the loss recorded a year earlier for the same period.