China Pacific may raise $3.3b in HK float

China Pacific Insurance (Group) Co and the country's pension fund plan to raise as much as HK$25.93 billion ($3.3 billion) in a Hong Kong share sale that may be the city's second-biggest this year, four people familiar with the plan said.

The nation's third-largest insurer and the National Social Security Fund are offering 861.3 million shares at HK$26.8 to HK$30.1 apiece, said the people, declining to be identified. The sale is made up of 90.9 percent new shares from the company, with the rest offered by the fund.

The offer values China Pacific at a discount of at least 27 percent to its two bigger competitors, based on estimates of embedded value by banks involved in the sale, two of the people said. The insurer, partly owned by Carlyle Group, will replenish capital after the company and rivals accelerated sales of lower-margin policies to boost market share.