Central Pacific Financial Corp. launched a much-anticipated $20 million rights offering today that enables shareholders of record as of Feb. 17 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 rights for the 2 million shares are transferable and can be transfered to another party or sold on the open market if there is a market for them. Sales of the rights will be tradable on the New York Stock Exchange under the symbol CPF-RT beginning tomorrow through May 5.

The rights-offering price for general investors is the same price paid by private investors in the company’s $325 million private placement.

Share of Central Pacific Bank’s parent closed down 61 cents, or 3 percent, today at $19.43. 

Eligible shareholders will be receiving a prospectus and certificate to exercise their rights.

The company also said that 18.5 million of the 32.5 million shares sold in the private placement at $10 per share will become freely tradable on the market when the registration statement for those shares becomes effective later this week. The stock could decline afterward due to the additional shares flooding the market.

The U.S. Treasury’s 5.6 million shares that were received in exchange for Troubled Asset Relief Program preferred shares are also unrestricted and already available to be traded.

The remaining 14 million shares of the 32.5 million in the private placement, including those held by the two lead investors and other parties, are restricted from being traded for either six months or one year.