Henderson Land Development chairman Lee Shau-kee is losing interest in initial public offerings. Yesterday, he warned investors to be careful about new listings, saying they were too pricey these days. 'An IPO is just like a chicken rib,' said Lee, meaning it is something that is hard to give up even though it is tasteless. 'A stock is valued at HK$1 a share, but they price it at HK$2 when they sell to the public. They have already reaped a big profit.' Lee said overpriced new listings made it difficult to make a profit, adding that he had been losing interest in flotations. Sometimes, the profit was not enough to cover interest charges on the borrowings to buy the stock, he said. 'Investing is not as good as before.' He was speaking after Metallurgical Corp of China, the building and engineering firm that raised HK$2.3 billion in Hong Kong's biggest listing this year, fell on its debut yesterday. Shares in Metallurgical, which helped build the Olympic stadium for the Beijing Olympic Games last year, fell 11.7 per cent below their offer price of HK$6.35, the worst market debut in the city so far this year. Lee earlier revealed he had bought US$3 million worth of Metallurgical shares, or about 3.67 million shares. 'I will not hold it for long-term investment. I will sell it when the price is up a bit,' he said. Lee also warned small investors not to blindly buy stock because well-known personalities had done so. 'They should rely on the quality of the stocks, not follow hearsay,' he said. Despite his warnings, Lee has subscribed to US$110 million worth of shares in two other listings. He invested US$10 million in China South City Holdings, which manages logistic operations and runs a trade centre in Shenzhen, and US$100 million in China Resources Cement Holdings. China South City is raising up to HK$3.15 billion from 1.5 billion shares, while China Resources Cement is seeking HK$6.39 billion.