Blue Water Acquisition Corp. III Announces Closing of Upsized $253 Million Initial Public Offering

Rhea-AI Summary

Blue Water Acquisition Corp. III (BLUWU) has successfully completed its upsized initial public offering, raising $253 million by selling 25.3 million units at $10.00 per unit. The offering includes 3.3 million units from the full exercise of underwriters' over-allotment option. Each unit comprises one Class A ordinary share and one-half redeemable warrant, with each whole warrant allowing purchase of one Class A ordinary share at $11.50. Trading began on Nasdaq Global Market under 'BLUWU' on June 10, 2025, with Class A shares and warrants to later trade separately under 'BLUW' and 'BLUWW'. The SPAC is led by Chairman and CEO Joseph Hernandez, with BTIG, LLC serving as sole book-running manager.

Positive

• Successfully raised $253 million through upsized IPO, exceeding initial expectations
• Full exercise of over-allotment option by underwriters indicates strong market demand
• Listing on major exchange (Nasdaq Global Market) provides high visibility and liquidity

Negative

• As a SPAC, there's no operating business yet and success depends on finding suitable acquisition target
• Warrants may cause future dilution for shareholders
• Time pressure to complete acquisition within typical SPAC timeline

Insights

SPAC Financial Analyst

Blue Water Acquisition Corp. III successfully raised $253M in an upsized SPAC IPO, signaling continued investor appetite for blank-check vehicles despite market volatility.

Blue Water Acquisition Corp. III has successfully completed its upsized IPO, raising $253 million by offering 25.3 million units at $10 each. The full exercise of the 3.3 million unit over-allotment option by underwriters signals strong initial demand for this blank-check company. Each unit consists of one Class A ordinary share and half a warrant exercisable at $11.50.

This SPAC's structure follows the standard template with a $10 unit price and warrants exercisable at a 15% premium, which balances investor upside potential with dilution concerns for eventual merger targets. The company is led by Chairman and CEO Joseph Hernandez, suggesting possible targeting of biotech or healthcare sectors given his background, though no specific acquisition focus was disclosed in this announcement.

The successful raise demonstrates continuing investor appetite for SPACs despite the challenging market environment many blank-check companies have faced recently. The upsized offering (with fully exercised over-allotment) suggests institutional investors see potential in this vehicle, though SPAC investors should note that no target has been identified yet, and the typical 24-month search window applies. Blue Water management now has approximately $253 million to pursue an acquisition, though the actual deployable capital will be slightly less after accounting for offering expenses and ongoing operational costs.

GREENWICH, Conn., June 11, 2025 /PRNewswire/ -- Blue Water Acquisition Corp. III (the "Company") (Nasdaq: BLUWU), a newly organized special purpose acquisition company formed as a Cayman Islands exempted company and led by Chairman and Chief Executive Officer Joseph Hernandez, today announced the closing of its upsized initial public offering of 25,300,000 units, which includes 3,300,000 units issued pursuant to the full exercise by the underwriters of their over-allotment option, at an offering price of $10.00 per unit, resulting in gross proceeds of $253,000,000.

The Company's units began trading on The Nasdaq Global Market ("Nasdaq") under the ticker symbol "BLUWU" on June 10, 2025. Each unit consists of one Class A ordinary share and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Once the securities comprising the units begin separate trading, the Class A ordinary shares and the warrants are expected to be traded on Nasdaq under the symbols "BLUW" and "BLUWW," respectively.

BTIG, LLC acted as sole book-running manager for the offering.

The registration statements relating to the securities sold in the initial public offering were declared effective by the U.S. Securities and Exchange Commission (the "SEC") or automatically effective on June 9, 2025. The offering was made only by means of a prospectus, copies of which may be obtained from: BTIG, LLC, 65 East 55th Street, New York, New York 10022, or by email at ProspectusDelivery@btig.com, or by accessing the SEC's website at www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Blue Water Acquisition Corp. III

Blue Water Acquisition Corp. III is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an acquisition opportunity in any business, industry, sector or geographical location, the Company intends to focus on high-potential companies in the artificial intelligence (AI), biotechnology, healthcare and technology sectors.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements," including with respect to the Company's initial public offering and search for an initial business combination. No assurance can be given that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and prospectus for the Company's initial public offering filed with the SEC. Copies are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.

Contact:

Stephanie Mercier
15 E. Putnam Avenue, Suite 363
Greenwich, CT 06830
stephbluewatervp@gmail.com

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SOURCE Blue Water Acquisition Corp iii

FAQ

What is the IPO price for Blue Water Acquisition Corp III (BLUWU)?

Blue Water Acquisition Corp III (BLUWU) priced its IPO at $10.00 per unit

How much money did Blue Water Acquisition Corp III raise in its IPO?

Blue Water Acquisition Corp III raised $253 million in gross proceeds through its upsized IPO

What does each BLUWU unit consist of?

Each unit consists of one Class A ordinary share and one-half of one redeemable warrant, with each whole warrant allowing purchase of one share at $11.50

Who is leading Blue Water Acquisition Corp III?

Blue Water Acquisition Corp III is led by Chairman and Chief Executive Officer Joseph Hernandez

What are the trading symbols for Blue Water Acquisition Corp III?

The units trade as 'BLUWU', with Class A shares and warrants to later trade as 'BLUW' and 'BLUWW' respectively