POSTED: 02:39 p.m. HST, Apr 12, 2011
Central Pacific Financial Corp.'s stock could decline tomorrow after the bank said that 18.5 million common shares issued predominantly to private investors at $10 a share were declared effective today by the Securities and Exchange Commission. The parent of Central Pacific Bank, the state's fourth-largest bank in terms of assets, said today that the new registered shares issed as part of a $325 million capital-raising program are tradable tomorrow.
Stock of Central Pacific Bank's parent slipped 36 cents, or 1.9 percent, today to $19.07. But the additional shares could put downward pressure on Central Pacific's stock tomorrow if the owners of the new shares decide to take profits.
In the meantime, Central Pacific is conducting a $20 million rights offering in which shareholders of record as of Feb. 17 are eligible to purchase up to 1.3 new shares at $10 a share for every share they own. The period to exercise the rights expires at the end of trading on May 6. The share also can be transfered to another party or be sold on the open market.