Ultra deep-water offshore drilling contractor Pacific Drilling announced on Tuesday that trading in its common stock has been suspended on the New York Stock Exchange (NYSE).
As reported on Splash last week, Pacific Drilling forewarned of such a possibility because the company was not in compliance with the NYSE’s continued listing standard.
That standard requires companies with listed common stock to maintain an average global market capitalization of not less than $15m over a period of 30 successive trading days.
Last week Pacific Drilling – which has corporate offices in Houston and others in Luxembourg, Nigeria and Brazil – also acknowledged that it had failed to keep the average closing price of its common stock at $1 or more over 30 consecutive trading days, although that was not mentioned in the delisting announcement.
Pacific Drilling’s common shares will start trading in the over-the-counter (OTC) market the Pink Quotes on Wednesday. Its NYSE ticker symbol PACD will be discontinued and its new OTC symbol will be PACDF.
Although it has the right to appeal the NYSE’s decision, Pacific Drilling announced it will not do so, in the best interests of shareholders.
The company had joined the NYSE in 2011 after previously being listed on the Norwegian exchange.