Welcome to Cogent Capital Markets

1. Family-Owned Businesses
Our platform is ideal for family-owned businesses seeking an efficient way to manage their shareholders while maintaining control over who participates in the company’s equity. Whether you’re looking to pass ownership to the next generation or bring in outside investors, our marketplace makes it easier to balance these needs.

2. Recently Delisted Companies
Companies that have delisted from public markets often struggle to maintain liquidity and manage their shareholder base. Cogent Capital Markets provides a solution by creating a controlled marketplace where shares can be traded based on real demand without the regulatory burden of public markets.

3. Employee-Owned Firms
Employee-owned businesses can use our platform to facilitate the trading of shares among employees, ensuring that ownership remains in-house and the value of shares reflects real market demand.

Eligibility Criteria
To join, companies must:

• Be established in Malaysia.
• Have a proven track record of profitability.
• Have maintained Shareholders Funds of at least USD 2 million.

What is Cogent Capital Markets?

Cogent Capital Markets is an innovative, integrated service that provides companies with tailored electronic trading, settlement, and registry solutions. It acts as a company-controlled marketplace, offering a bespoke auction model for trading shares.

Who is Cogent Capital Markets suitable for?

Cogent Capital Markets is suitable for a range of companies including those recently delisted from a public market, family-owned businesses looking for succession planning while retaining control, and employee-owned businesses operating internal markets for their shareholders. To be eligible, companies must be established in Malaysia, have a proven track record of profitability, a market capitalisation of at least USD 2 million, and not be an early-stage investment.

How does the auction trading process work?

Cogent Capital Markets utilises an auction model for trading shares. This provides a transparent and fair method for determining the market price, especially for shares that are not frequently traded. All buy and sell orders are matched at a single auction price, maximising trading volume. Orders are filled based on a price-time priority.

Can existing shareholders retain pre-emption rights?

Yes, companies can choose to use a standard algorithm or a pre-emption algorithm for their auctions. This allows existing shareholders to have the first right of execution, protecting them from dilution by new investors.

How does share and cash settlement work?

Shareholders are required to pre-fund their orders at least two days before the auction closes. This pre-funding model facilitates the seamless electronic settlement of both cash and shares. The share register updates to reflect the auction results.

Is Cogent Capital Markets secure?

Yes, Cogent Capital Markets is a cloud-based service regulated in Labuan, Malaysia systems are built and maintained in accordance with best practice cyber security standards. Measures include regular updates and patching, strong firewalls, mandatory two-factor authentication, encryption, and strict access controls.

How much does it cost to join Cogent Capital Markets?

Cogent Capital Markets operates on an all-inclusive annual subscription fee tailored to the specific requirements of each company. This means there are no transaction fees, custody fees, or commissions for either the company or its shareholders, resulting in a more cost-effective solution.

Are companies on Cogent Capital Markets listed on a public stock exchange?

No. Cogent Capital Markets is a platform for private companies, and the investments made through this platform are not listed or traded on any public stock exchange. There is no public offering or trading involved, and companies on Cogent Capital Markets are not required to seek regulatory approval for a prospectus or listing document.