Company: BACC
Filing Date: 2025-05-14
Form Type: S-1
Source: 0001185185-25-000465
Chunk: 131

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-05-14
Form: S-1
Chunk 131
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 | All                                                                                                                                    
 founder shares would automatically convert into Class A ordinary shares upon completion of our initial business combination or earlier 
 at the option of the holder.                                                                                                           |

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Based on these assumptions, each Class A ordinary
share would have an implied value of $6.45 per share upon completion of our initial business combination, representing an approximately
35.5% decrease from the initial implied value of $10.00 per public share. While the implied value of $6.45 per Class A ordinary share
upon completion of our initial business combination would represent a dilution to our public shareholders, this would represent a significant
increase in value for our sponsor relative to the price it paid for each founder share. At $6.45 per Class A ordinary share, the
5,609,500 Class A ordinary shares that the sponsor would own upon completion of our initial business combination (after automatic
conversion of the 5,269,500 founder shares and the conversion of private placement rights) would have an aggregate implied value of $56,095,000.
As a result, even if the trading price of our Class A ordinary share significantly declines, the value of the founder shares held
by our sponsor will be significantly greater than the amount our sponsor paid to purchase such shares. In addition, our sponsor could
potentially recoup its entire investment in our company even if the trading price of our Class A ordinary shares after the initial
business combination is as low as $0.61 per share. As a result, our sponsor is likely to earn a substantial profit on its investment in
us upon disposition of its Class A ordinary shares even if the trading price of our Class A ordinary shares declines after we
complete our initial business combination. Our sponsor may therefore be economically incentivized to complete an initial business combination
with a riskier, weaker-performing 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. The non-managing sponsor investors will
share in any appreciation of the founder shares through their membership interests in the sponsor if we successfully complete a business
combination. Accordingly, non-managing sponsor investors’ interests in the founder shares owned by them indirectly through their
membership interests in the sponsor may provide them with an incentive to vote any public shares they own in favor of a business combination,
and make a substantial profit on such interests, even if the business combination is with a