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It's likely to be a blowout year for initial public offerings (IPOs). In fact, many observers think 2020 could be the largest IPO year yet, with some places like CB Insights saying there are 402 unicorns worth $1.3 trillion in total potentially going public. That's why we're bringing you the three top IPOs to watch in 2020.
This year's IPO potential is even more impressive when you consider that 2019's IPOs raised $50 billion and gave us standout IPO stocks like Beyond Meat Inc. (NASDAQ: BYND).
Beyond Meat is the perfect example of why the market gushes with excitement over IPOs. In the months following its May 2019 IPO date, it soared over 200%. So, public offerings present the opportunity to realize enormous share price appreciation in cutting-edge stocks.
And the best IPOs to watch for in 2020 have the same potential as IPOs like Beyond Meat.
In fact, they may have even more potential. Our three top IPOs to watch in 2020 could be even better.
Every single one of these companies is undergoing strong and rapid growth in billion-dollar industries poised to expand even more in the future.
Some of the valuations for the best IPOs for next year are as high as $100 billion.
To remain up-to-date with the massive number of IPOs slated to hit the public markets in 2020, check out our list of the three best IPOs below.
Top IPOs to Watch in 2020, No. 3: Hemptown
Headquartered in Oregon, Hemptown is one of the largest U.S. weed-based companies in a prime position to profit from the lucrative legal marijuana market.
Hemptown is unique because it produces CBD, cannabis, and is engaged in the exploration of high-cannabigerol (CBG) genetics. CBG is the precursor – or the stem cell – to cannabis compounds like THC and CBD.
Although CBG is a THC component, by itself it is not intoxicating. Plus, its profile on health is said to surpass that of CBD, which has all kinds of health benefits.
For example, AXIM Biotechnologies Inc. has indicated that CBG is a powerful anti-inflammatory and antibacterial to boot.
In fact, Forbes has reported that CBG is a "neuroprotectant" and could help fight against cancer, Huntington's disease, and methicillin-resistant Staphylococcus aureus (MRSA).
In short, CBG constitutes another marijuana movement, and Hemptown is a leader in the field. GlobeNewswire reports that the company has more than 500 acres dedicated solely to CBG production.
President and co-founder Michael Townsend said in an MJBulls interview that its strategy of becoming a weed authority in North America and its CBG focus has helped its valuation skyrocket to $125 million.
So, a 2020 IPO for this company is very realistic.
Top IPOs to Watch in 2020, No. 2: Instacart
Food delivery services are growing increasingly popular in the United States., and Instacart is one such food delivery service. But it doesn't focus just on restaurants. Instead, it focuses on groceries delivered to consumer homes from grocery stores in their areas.
Back in 2018, Instacart raised nearly $1 billion.
Similar to the e-commerce giant Amazon.com Inc. (NASDAQ: AMZN), Instacart is available in all 50 states for customers to have groceries delivered directly to their doorstep. It's partnered with more than 15,000 grocery stores, including well-known names like Costco Wholesale Corp. (NASDAQ: COST) and Kroger Co. (NYSE: KR).
The stores have approximately 50,000 customers. And these alliances have served to make Instacart very lucrative, with a current valuation of more than $8 billion.
What's even more impressive is that the company has flourished even though Amazon's partnership with Whole Foods ended Instacart's partnership with the grocery chain.
While no official date for the IPO has been set yet, CEO Apoorva Mehta has suggested an IPO date could be soon – and 2020 looks reasonable.