Company: BLUWU
Filing Date: 2025-02-20
Form Type: S-1
Source: 0001493152-25-007630
Chunk: 142

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-02-20
Form: S-1
Chunk 142
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 (4) | As adjusted                                                                                                                      
 amount assumes no exercise of the underwriters’ over-allotment option to purchase an additional 60,0000 private placement units. |

| (5) | Actual                                                                                                                                   
 share amount is prior to any forfeiture of founder shares and as adjusted amount assumes no exercise of the underwriters’ over-allotment 
 option and forfeiture of an aggregate of 750,000 founder shares.                                                                         |

| 98 |

<div align='center'>Management’s discussion and analysis of
financial condition and results of operations</div>

Overview

We are a blank check company incorporated on November 1, 2024 as a Cayman Islands exempted company with no material operations of our own. We were formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, which we refer to throughout this prospectus as our initial business combination. We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target. We may pursue an initial business combination in any business or industry but expect to focus on biotechnology, healthcare and technology companies. Our units offered in this prospectus include shares of a Cayman Islands blank check company instead of the shares of the operating entities with whom we may combine. We intend to effectuate our initial business combination using cash from the proceeds of this offering and the private placement of the private placement units, the proceeds of the sale of our shares in connection with our initial business combination (pursuant to forward purchase agreements or backstop agreements we may enter into following the consummation of this offering or otherwise), shares issued to the owners of the target, debt issued to bank or other lenders or the owners of the target, other securities issuances, or a combination of the foregoing.

The issuance of additional shares in connection with a business combination to the owners of the target or other investors:

| ● | may                                                                                                                                      
 significantly dilute the equity interest of investors in this offering, which dilution would increase if the anti-dilution provisions    
 in the Class B ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis upon               
 conversion of the Class B ordinary shares;                                                                                               |
| ● | may                                                                                                                                      
 subordinate the rights of holders of Class A ordinary shares if preference shares are issued with rights senior to those afforded        
 our Class A ordinary