** Shares of Australia's Avecho Biotechnology AVE.AX fall as much as 7.7% to A$0.006

** The biopharmaceutical company announces a A$2.5 million ($1.62 million) placement at an issue price of A$0.005 per share

** Issue price at a discount of 28.6% to stock's last closing

** Funds will be primarily used to accelerate commercial manufacturing activities, others, says Avecho

** Near 9 million shares change hands, 4.7x the 30-day average volume

** Stock has risen 140% this year, as of 0247 GMT

($1 = 1.5389 Australian dollars)

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com;))