Zain, the Kuwaiti-based Middle Eastern and sub-Saharan mobile group, has managed to defy the gloomy global financial conditions by raising KWD1.2 billion (US$4.49 billion) in additional shareholder funding. Zain said that 99 percent of its shareholders subscribed to the capital increase with the number of subscribed shares exceeding 1.4 billion. This brought the total number of Zain shares to 4.28 billion with total shareholders’ equity reaching US$6.42 billion as of June 30. However, the US$4.49 billion raised was less than the US$5 billion forecast when the capital increase was first announced earlier this year.

Zain chief executive Dr Saad Al Barrak said the capital increase was the largest in the history of Kuwait and a “unanimous vote of confidence by our shareholders in Zain’s management team, the performance to date and in our profitable expansion strategy aiming to be a top ten global mobile operator by 2011.” He added that the the proceeds of the capital increase will be used to finance future strategic expansion plans and meet financial commitments. Zain is currently present in 22 countries and serves over 50 million active customers.