Washington Health Care (WHC), a private healthcare provider founded by U.S.-trained physician Markos Feleke (MD), is preparing to go public and break ground on a 240-million-dollar tertiary hospital. The company, incorporated in 2013 with three million dollars in capital, is now exploring a dual-track expansion strategy through an Initial Public Offering (IPO) and a public-private partnership (PPP) with the government.

Markos, who retains 80pc ownership in the company, co-founded WHC with fellow physicians Fasil Tefera (MD) and Gasmelbari Mustafa (MD). Since its inception, WHC has expanded its footprint with two secondary care centres in Addis Abeba’s Bole and Bole Bulbula neighbourhoods. The company’s registered capital has grown to 10 million dollars, and it now serves between 300 and 500 patients a day, supported by a staff of 400.

WHC’s ambitions centre on the Washington Tertiary Hospital, a two-phase mega project designed to serve 800,000 patients annually. The first phase, budgeted at 70 million dollars with a capacity of 110 beds, has faced an eight-month delay due to overlaps with the corridor development project. The facility is now expected to open next year. A 170-million-dollar second phase will bring total capacity to 500 beds. The hospital plans to offer the country’s first private radiation therapy services and to establish a centre of excellence in cancer diagnosis and treatment.

For Markos, the path to expansion is constrained by a familiar bottleneck of financing.

“We hope the IPO offering will help us move finances towards our newest projects,” he told Fortune, citing persistent gaps despite substantial investments.

The capital market option is being timed to coincide with the launch of the new hospital, a calculated move intended to boost share valuation. However, before shares can be offered, WHC is required to undergo a legal transition from a private limited company to a share company. The transformation entails regulatory restructuring, disclosure obligations, and governance reforms that many firms have yet to meet.

“The major goal is for companies with IPO plans to meet offering standards,” said Hana Tehlku, director general of the Ethiopian Capital Market Authority (ECMA).

According to Hana, the Authority has held 45 sessions on the IPO process, and three IPO service providers are expected to be licensed by the end of this month.