Posted at 12:07 p.m., Thursday, December 12, 2002
CPB to transfer stock listing to NYSE
Advertiser Staff
Five months after its share price dropped by 18 percent in one day, CPB Inc., the parent company of Central Pacific Bank, said it will transfer its stock listing to the New York Stock Exchange from the Nasdaq in hopes of avoiding wild price swings."The NYSE auction market structure will improve the liquidity and help minimize intra-day price volatility of our stock," said Clint Arnoldus, CPB president and CEO.
On July 22, a Monday, CPB's share price fell 18 percent only to recover all the loss by the end of that week.
That price drop forced CPB, Hawai'i's third largest bank-holding company, to issues its second quarter earnings statement a day early. Arnoldus also tried to reassure investors by explaining that the price movement was due to one institutional shareholder whose was converting holdings to match a stock index of which CPB was not a member.
Now the company is looking to the NYSE, America's oldest and largest stock exchange, to boost the company's image and provide some stability in price movements.
"Listing on the NYSE is an important milestone for CPB," said Arnoldus in a statement. "We have grown significantly since our first public stock listing in 1987 and we believe it's in the best interest of our shareholders to move to the NYSE."
The listing change will take place on Dec. 31. CPB said it is finalizing its selection of a new stock ticker symbol for use on the NYSE.
CPB shares were down 24 cents at $26.75 in midday trading today. It's shares are up nearly 82 percent this year, making it the best performer among Hawai'i]s major publicly traded companies.
In October, the bank reported third-quarter operating earnings surged nearly 30 percent for its 14th consecutive quarterly record.
