TN Bank listed on the Zimbabwe Stock Exchange yesterday at US32,08c, after demerging from TN Holdings.

A total of 207 298 shares valued at US$66 335 changed hands on the first day of trading.

The opening price was at par with what Econet Wireless Zimbabwe paid for each share when it bought a 45 percent stake in the bank.

TN Bank, which listed by way of introduction, becomes the ninth financial institution on the local bourse and the only listing since 2010.

TN Holdings, renamed Lifestyle Holdings, closed at US2,5c after 1,7 million shares were traded.

The limited number of shares traded was due to the consolidation of Lifestyle Holdings shares into the bank and it is also an indication that the shares are being tightly held.

Lifestyle Holdings shareholders received one TN Bank share for every 10 shares of the group.

After the listing dealers were sceptical whether the US32,08c was the right price for TN Bank. This opening price puts the bank's market capitalisation at US$44,3 million.

"We are going to see the market recorrecting the price, we do not feel this is the correct price - the price traded was based on the price paid by Econet," said one of the dealers.

Another dealer, however, differed saying the price was sustainable due to the commitment and strong capital base of the bank's shareholders.

Efforts will be made to further strengthen capital for purposes of enhancing underwriting capacity and increasing public confidence in the bank.

On Monday TN Holdings traded at a market capitalisation of only US$29 million.

Post demerger the two resulting entities yesterday traded at a combined market capitalisation of US$63 million, an upside of 119 percent.

"If we discount the new cash injection of US$20 million from Econet, then the actual upside is 50 percent," said one analyst.

At a market capitalisation of US$44,3 million, TN Bank is two thirds the size of CBZ Holdings and is bigger than ZB (US$17 million), Trust (US$3 million), NMB (US$32 million) and FBC (US$38 million).

Meanwhile, the mainstream industrial index slipped 0,34 percent to close at 133,11 points pulled down by losses in mobile giant Econet shedding off US2,49c to US427,50c. Diversified financial group ABCH and Fidelity Life both were a cent weaker at US55c and US14c respectively.

CBZ lost US0,50c to settle at US10,70c and TA Holdings slipped US0,30c to US11c.

However, BAT gained US7c to US270c and Phoenix was US0,10c firmer to close at a cent.

The mining index was up 5,71 percent to close at 87,72 points as Falgold gained US6,50c to trade at US22c and RioZim advanced US4,98c to US40c.

Bindura and Hwange were unchanged at previous trading levels.