Company: BACC
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001185185-25-000574
Chunk: 141

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-06-02
Form: S-1/A
Chunk 141
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 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 $3,672,500 purchase price for the 365,000 private placement units. Assuming
a trading price of $10.00 per public share upon consummation of our initial business combination, the 6,147,750 founder shares would have
an aggregate implied value of $61,477,500 and the 364,750 private placement shares would have an aggregate implied value of $3,647,500.
Even if the trading price of our ordinary shares were as low as $0.56 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. In addition, our non-managing sponsor investors (if any) may have
different interests than other public shareholders due to their additional upfront investment in the company and their membership interests
in the sponsor.

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The determination of the offering price of our units and the size of this offering is more arbitrary than the pricing of securities and size of an offering of an operating company in a particular industry. You may have less assurance, therefore, that the offering price of our units properly reflects the value of such units than you would have in a typical offering of an