Cash-hungry mainland companies are racing to tap Hong Kong's equity market amid rising volatility and investors shunning risky assets. Shoemaker Active Group Holdings, which has been selling new shares to fund expansion on the mainland, got just 523 valid applications from the public for its offering. The company, which makes casual footwear for men, priced its initial public offering at HK$1.20 a share - the bottom of the range - to raise a total of HK$337.4 million, according to a stock exchange statement issued yesterday. The public portion of Active Group's IPO was just 1.07 times oversubscribed. Retail response to another shoemaker, Hongguo International Holdings, which joined the Hong Kong stock exchange last week, was also lukewarm. The public portion of the company's IPO, which raised HK$622.3 million, was undersubscribed. Analysts said investors had lost interest in IPOs lately as the stock market was swamped with discounted shares following a series of sell-offs, rendering new companies with no track records unappealing. Construction equipment maker Sany Heavy Industry postponed a US$3.3 billion Hong Kong IPO and Xiao Nan Guo Restaurant Holdings last week said it would pull its US$75 million offering, citing market volatility as the main reason. The Hang Seng Index has had a roller-coaster ride in the past few weeks in response to poor growth prospects and concerns over the euro zone debt crisis. But the index had its biggest intra-day increase yesterday in more than two years, jumping 4.15 per cent or 722.75 points, and closed at 18,130.55 points. 'The rebound could leave investors high and dry when there's another round of sell-offs,' warned Patrick Yiu Ho-yin, managing director at Cash Asset Management. 'There are still a lot of uncertainties with the euro zone's debt problems.'