IE Networks, Liyana Healthcare Lead First Wave of Public Listing Aspirants

Aug 23 , 2025. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

IE Networks and Liyana Healthcare have emerged as the first two companies to complete the IPO readiness assessment under the IPO Clinic, a World Bank-supported initiative managed by the Ethiopian Capital Market Authority (ECMA). The program marks a milestone in an economy that has long relied on bank loans, as companies prepare to access public capital for the first time.

Two domestic companies, IE Networks and Liyana Healthcare, have emerged as the first to complete the IPO readiness assessment under the Ethiopian Capital Market Authority’s (ECMA) IPO Clinic.

Backed by the World Bank, the Clinic is a flagship initiative designed to usher private enterprises into the world of public financing, a radical departure from the traditional bank-dominated corporate finance model.

These firms, selected from an inaugural cohort of 26 companies, have demonstrated what regulators describe as “robust operational capability and strategic intent” to leverage equity markets. Their completion of the diagnostic stage marks the early stirrings of a capital market ecosystem still in its infancy but poised for transformation. Now, they are working with investment advisers, lawyers, and accountants to address a range of regulatory, operational, and financial adjustments recommended by the IPO Clinic, setting the stage for a potential public listing once market conditions permit.

The timeline for when IE Networks and Liyana Healthcare will actually list their shares remains uncertain, depending on their progress in meeting regulatory requirements and broader market trends.

“IE Networks and Liyana Healthcare represent exactly the type of forward-looking businesses the Clinic aims to support," said Assefa Sumoro, a senior capital market advisor at ECMA. "They are companies ready to scale and contribute to the evolving capital market ecosystem.”

Assefa credited the World Bank’s technical guidance and funding with making the IPO Clinic a reality, though he declined to disclose the amount of the Bank’s support. He depicted the Clinic as providing “world-class technical guidance and capacity building” for companies looking to tap into public markets for funding.

“Our goal is not simply to fill seats, but to work with companies that have the vision, governance, and operational readiness to navigate the IPO process successfully,” he told Fortune.

Among the first to benefit from this program is IE Networks, an Addis Abeba-based enterprise IT solutions provider incorporated in 2008 by Meried Bekele. With more than 200 employees and annual revenues of over 500 million Br, the company has established itself as a key player in the technology sector, delivering services in cloud infrastructure, cybersecurity, software development, smart city systems, and data centres.

IE Networks has completed over 250 major projects and counts global technology firms, including Dell, IBM, and Cisco, among its partners. The company has earned a reputation for delivering projects rapidly, maintaining professionalism, and nurturing strong customer relationships, although former staff members recall a culture of tough discipline and high performance demands.

For Meried, the journey started during his time at Ethio telecom, where he worked by day while solving networking issues for other companies at night. He initially founded IE Networks to manage his tax exposure, but soon turned it into one of the known domestic IT firms.

“Our focus will be to work on addressing these organisational gaps in the next two to three years,” he said, speaking of his experience with the IPO Clinic.

He disclosed that IE Networks is not planning to raise capital immediately, but that the process has equipped him and his team with insights to strengthen governance and systems for an eventual market entry.

Liyana Healthcare has also completed the IPO readiness assessment. The company is led by founder and Chief Executive Officer, Girma Ababi (MD), an experienced physician and anatomical pathologist, whose own journey began in academia as a university lecturer. Liyana Healthcare has evolved into a multifaceted healthcare business offering advanced medical care, education, research, consultancy, and product distribution.

The company’s centres in Addis Abeba and Hawassa provide trauma, surgery, internal medicine, and telemedicine services, including through the LIYANA-CARE app. Liyana also manufactures and distributes medical gases, drugs, detergents, and chemicals, all with a focus on delivering integrated and affordable healthcare solutions.

According to Girma, his motivation to build the company came from personal frustration. Early in his career, he would diagnose cancer patients but had to face the unfortunate reality that treatment options were out of reach.

“Rather than telling a patient they have cancer and shortening their life by stress, it was better not to tell them anything,” he recalled, describing the emotional toll that led him to seek practical solutions.

He started with Yanet Internal Medicine Speciality Centre, a clinic that grew into a family-owned company and later welcomed investments from other medical professionals. Liyana Healthcare, which he co-founded with his wife, Emebet Shifaw, a laboratory specialist, has since expanded into Liyana Digital Healthcare Solutions, Liyana College of Health Sciences, and Liyana Oxygen Manufacturing.

Liyana has remained profitable for 15 years, although recent heavy investments have brought fluctuations in performance. The company is currently forming a health insurance and microfinance arm, known as Family & Aspire, to help patients finance their treatment.

Girma has ambitions for Ethiopia to become a destination for medical tourism, joining countries like South Africa, Kenya, and Morocco. He foresees that achieving this vision will require large-scale healthcare centres with investments of no less than 10 billion Br. The company is preparing to transition from a private limited company to a share company, a necessary step to qualify for listing on the Ethiopian Securities Exchange (ESX), which plans to list nine companies in the coming year.

Liyana aspires to be among them as the ESX opens its first call for applications.

The Capital Authority is setting strict eligibility criteria for Cohort I of its IPO Clinic, requiring participating companies to be Ethiopian-registered, have at least two years of operational history, demonstrate strong financial performance, and exhibit clear growth potential. Applicants are required to commit to senior management and actively address readiness gaps. Over a one-year cycle, the Clinic provides diagnostic assessments, training, and technical support to help firms prepare for regulatory compliance, financial transparency, and operational strengthening.

They also gain access to investors and regulators, to build a pipeline of IPO-ready companies and create a competitive and sustainable capital market. Market observers are closely monitoring the process, stating its importance in preparing domestic companies for the rigorous discipline required by capital markets.

Girum Amaha, an economist and consultant, described ECMA’s efforts as crucial for filling a knowledge gap.

“For the public good, companies with the greatest chance of success must go through this process under ECMA’s guidance,” he said.

Some experts have raised concerns that the Authority’s regulatory framework can be daunting for newcomers and other stakeholders, who sometimes prefer to seek easier licenses, such as for investment advisers. Girum counters that this discipline is necessary, noting, “Loose laws fuelled the 2008 financial crisis, which led Western regulators to tighten oversight."

"Ethiopia needs exactly the kind of discipline ECMA is applying to ensure long-term market stability,” he told Fortune.

PUBLISHED ON Aug 23,2025 [ VOL 26 , NO 1321]