NEW YORK (AP) -- Doral Financial Corp. on Tuesday announced a 1-for-20 reverse split of its common stock.
The move will be effective when the market closes on Friday.
Last week, the Puerto Rico-based bank holding company's shareholders voted to grant the company's board the authority to put in place a reverse stock split at their discretion. They also gave it the authority to determine the exact reverse stock split ratio within a certain range.
After receiving the approval, the board decided on Saturday to set the reverse stock split ratio at one new share of common stock for each 20 shares currently outstanding. Doral's common stock will begin trading on the New York Stock Exchange on a split-adjusted basis when the market opens on Monday.
As a result of the reverse split, the number of issued and outstanding shares of the company's common stock will be reduced to about 6.7 million shares from about 134 million. And the number of authorized shares of common stock will be proportionally reduced to 15 million from 300 million, Doral said.
Doral shares were flat at 90 cents in morning trading.