Company: BACC
Filing Date: 2025-05-14
Form Type: S-1
Source: 0001185185-25-000465
Chunk: 132

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-05-14
Form: S-1
Chunk 132
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 target that ultimately declines in value and
is not profitable for other public shareholders.

This dilution would increase to the extent that the anti-dilution provisions of the founder shares result in the issuance of Class A ordinary shares on a greater than one-for-one basis upon conversion of the founder shares at the time of our initial business combination and would become exacerbated to the extent that public shareholders seek redemptions from the trust for their public shares. In addition, because of the anti-dilution protection in the founder shares, any equity or equity-linked securities issued in connection with our initial business combination would be disproportionately dilutive to our Class A ordinary shares.

The value of the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per public share.

Upon the closing of this offering and assuming no
exercise of the over-allotment option, our sponsor, and the non-managing sponsor investors (if any) will have invested in us an aggregate
of $3,425,000, comprised of the $25,000 purchase price for the founder shares and the $3,400,000 purchase price for the 340,000 private
placement units. Assuming a trading price of $10.00 per public share upon consummation of our initial business combination, the 5,269,500
founder shares would have an aggregate implied value of $52,695,000 and the 340,000 private placement shares would have an aggregate implied
value of $3,400,000. Even if the trading price of our ordinary shares were as low as $0.61 per share, and the private placement units
are worthless, the value of the founder shares and private placement shares would be equal to our sponsor’s, and the non-managing
sponsor investors’ (if any) aggregate initial investment in us. As a result, our sponsor, including the non-managing sponsor investors
(if any), is likely to be able to make a substantial profit on its investment in us at a time when our public shares have lost significant
value. Accordingly, members of our management team, who own interests in our sponsor, may be more willing to pursue a business combination
with a riskier or less-established target business than would be the case if our sponsor had paid the same per share price for the founder
shares as our public shareholders paid for their public shares in this offering