Kuwait’s Zain has increased its holding in unprofitable subsidiary Zain Saudi from 25% to 37% following a relatively weak response from other shareholders to the company’s recent rights issue. The move follows a reversal in strategy after Zain originally tried to sell its entire holding in 2011. According to Reuters, despite the rights issue some analysts have questioned whether the company has enough financial firepower to better compete with rivals. SAR2.55 billion (USD680 million) of the capital raised from the rights issue came from converting loans from founding shareholders into equity, while SAR750 million will be used to repay part of a SAR9.75 billion Islamic facility and SAR1.43 billion will be spent on reducing current liabilities. Only the remaining SAR1.15 billion will be used for capital expenditure, specifically the deployment of 1,300 new network sites and upgrading infrastructure.