Rights Agreement, dated January 31, 2022, between the Registrant and Continental Stock Transfer & Trust Company, as rights agent

Exhibit 4.2

Execution Version

RIGHTS AGREEMENT

This Rights Agreement (this “Agreement”) is made as of January 31, 2022 between Blue World Acquisition Corporation, a Cayman Islands company, with offices at 244 Fifth Avenue, Suite B-88, New York, NY 10001 (the “Company”), and Continental Stock Transfer & Trust Company, a New York limited liability trust company, with offices at 1 State Street, 30th Floor, New York, NY 10004 (the “Right Agent”).

WHEREAS, the Company has received a firm commitment from Maxim Group LLC (“Maxim”), as sole underwriter, to purchase up to an aggregate of 9,200,000 units (including up to 1,200,000 units if the over-allotment option is exercised in full or in part), each unit (“Unit”) comprised of one Class A ordinary share of the Company, par value $0.0001 per share (the “Class A Ordinary Shares”), one-half of one redeemable warrant to acquire one Class A Ordinary Share (the “Public Warrants”), and one right to receive one-tenth of one Class A Ordinary Share (the “Public Rights”) upon the happening of the triggering event described herein, and in connection therewith, will issue and deliver up to an aggregate of 9,200,000 Public Rights upon consummation of such public offering, 1,200,000 of which are attributable to the over-allotment option (“Public Offering”);

WHEREAS, simultaneously with the consummation of the Public Offering, the Company will issue and deliver up to an aggregate of 378,480 rights underlying private units, 30,000 of which are attributable to the over-allotment option (the “Private Rights”);

WHEREAS, the Company may issue up to an additional 4,000,000 Rights (or 4,360,000 Rights if the over-allotment option is exercised in full), which will be identical to the Private Rights, in consideration of certain working capital loans that may be made by Blue World Holdings Limited (the “Sponsor”), or the Company’s officers, directors or affiliates;

WHEREAS, the Company may issue 40,000 units (or up to 46,000 if the over-allotment option is exercised in full) (the “Extension Loan Units”) at a price of $10.00 per Extension Loan Unit, with each Extension Loan Unit consisting of one Class A Ordinary Share, one-half (1/2) of one warrant (a whole warrant of each such warrant, a “Extension Loan Warrant”) and one right to receive one-tenth (1/10) of one Class A Ordinary Share upon the consummation of an initial business combination (the “Extension Loan Rights”, together with the Public Rights, the Private Rights, and along with such other rights as the Company issues from time to time hereunder, the “Rights”), for each loans made by the Sponsor, its affiliates or designees in connection with the 3-month period extension for the Company’s initial business combination, up to three times;

WHEREAS, the Company has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-1, File No. 333-261585 (“Registration Statement”), for the registration, under the Securities Act of 1933, as amended (“Act”) of, among other securities, the Public Rights and the Class A Ordinary Shares issuable to the holders of the Public Rights;

WHEREAS, the Company desires the Right Agent to act on behalf of the Company, and the Right Agent is willing to so act, in connection with the issuance, registration, transfer and exchange of the Rights;

WHEREAS, the Company desires to provide for the form and provisions of the Rights, the terms upon which they shall be issued, and the respective rights, limitation of rights, and immunities of the Company, the Right Agent, and the holders of the Rights; and

WHEREAS, all acts and things have been done and performed which are necessary to make the Rights, when executed on behalf of the Company and countersigned by or on behalf of the Right Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution and delivery of this Agreement.

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

Blue World Acquisition Corporation

244 Fifth Avenue, Suite B-88

New York, NY 10001

Attn: Liang Shi

and

Robinson & Cole LLP

Chrysler East Building

666 Third Avenue, 20th floor

New York, NY 10017

Attn: Arila E. Zhou, Esq.

Continental Stock Transfer & Trust Company

1 State Street, 30th Floor

New York, NY 10004

Attn: Compliance Department

and

Maxim Group LLC

345 Park Avenue

New York, New York 10154

Attn: Alex Jin

and

Loeb& Loeb LLP

345 Park Avenue

New York, New York 10154

Attn: Mitchell S. Nussbaum, Esq., David J. Levine, Esq.

[Signature Page Follows]

IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written.

[Signature Page to Rights Agreement-Blue World Acquisition Corporation]

EXHIBIT A

Form of Right

Execution Version

BLUE WORLD ACQUISITION CORPORATION

INCORPORATED UNDER THE LAWS OF CAYMAN ISLANDS

RIGHT

SEE REVERSE FOR

CERTAIN DEFINITIONS

CUSIP G1263E 110

THIS CERTIFIES THAT, for value received

is the registered holder of a right or rights (the “Right”) to automatically receive one-tenth of one Class A ordinary share, $0.0001 par value (“Class A Ordinary Shares”), of Blue World Acquisition Corporation (the “Company”) for each Right evidenced by this Rights Certificate on the Company’s completion of an initial business combination (as defined in the prospectus relating to the Company’s initial public offering (“Prospectus”)) upon surrender of this Right Certificate pursuant to the Rights Agreement between the Company and Continental Stock Transfer & Trust Company, as Rights Agent. In no event will the Company be required to net cash settle any Right.

Upon liquidation of the Company in the event an initial business combination is not consummated during the required period as identified in the Company’s Amended and Restated Memorandum and Articles of Association , the Right shall expire and be worthless. The holder of a Right shall have no right or interest of any kind in the Company’s trust account (as defined in the Prospectus).

Upon due presentment for registration of transfer of the Right Certificate at the office or agency of the Rights Agent, a new Right Certificate or Right Certificates of like tenor and evidencing in the aggregate a like number of Rights shall be issued to the transferee in exchange for this Right Certificate, without charge except for any applicable tax or other governmental charge. The Company shall not issue fractional share upon exchange of Rights. The Company reserves the right to deal with any fractional entitlement at the relevant time in any manner (as provided in the Rights Agreement).

The Company and the Rights Agent may deem and treat the registered holder as the absolute owner of this Right Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any conversion hereof, of any distribution to the registered holder, and for all other purposes, and neither the Company nor the Right Agent shall be affected by any notice to the contrary.

This Right does not entitle the registered holder to any of the rights of a shareholder of the Company.

Dated:

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

Additional Abbreviations may also be used though not in the above list.

Blue World Acquisition Corporation

The Company will furnish without charge to each shareholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of share or series thereof of the Company and the qualifications, limitations, or restrictions of such preferences and/or rights. This certificate and the rights represented thereby are issued and shall be held subject to all the provisions of the memorandum and articles of association and all amendments thereto and resolutions of the Board of Directors providing for the issue of Class A Ordinary Share (copies of which may be obtained from the secretary of the Company), to all of which the holder of this certificate by acceptance hereof assents.

For value received, ___________________________ hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

Dated _____________________

Signature(s) Guaranteed:

The holder of this certificate shall have no right or interest of any kind in or to the funds held in the Company’s trust account (as defined in the Prospectus).