Private Placement structure generally will use PVWAP 5 days average to get the Fixed Price for Placement. What does it mean by PVWAP?

PVWAP = Previous Volume Weighted Average Price or Last 5 days Volume Multiply with Average Price

This scenario is to get the Final Agreed price for placement of new shares. Generally it will be capped at max 10% per allotment. The reason generally why a share price most likely will run up before Placement is done is because the company can raise more cash with higher PVWAP recorded.

Give you an example for easy understanding:

Case 1: 
Company Price = RM 1 
Shares outstanding = 100m
Market Cap = RM100m 
Raising 10% for PP @ RM1 = RM10m for 10m shares
New shares outstanding = 110m (your P/E, EPS and ROE will be diluted, last time divide by 100m now 110m)

Case 2:
Company Price = RM 1
Shares outstanding = RM100m
Market Cap = RM100m
Look for good price before doing the PP, example market peak @ price 1.50, use the PVWAP 5 days let's say @ 
RM1.40 = RM14m raised. (same amount of shares post pp 110m, amount diluted is same but amount raised improved 4m)

Next Question: Does Private Placement Good?

If a company is raising cash to pay debts, it does not carry business value. It cant increase the company's business. It damages the shareholders value by dilluting the shares holding. But why company still do it? Generally it is cash strapped and high gearing. Not enough cash to pay debts then place out shares to get money from shareholders.

Will the price move up or down?

During the PP exercise, the share price will be maintained above the PVWAP. Why? If the mother price is trading below PP price, why would you want to pay RM500k per block to subscribe? Just buy from open market will do since it is cheaper. How about post Private Placement. That one I can't comment much. You read back and you will get the answer.

Disclaimer: My comments are not relevant to any of the listed company. It is base on sole opinion of the writer. Do not link my comments to any of the listed company corporate exercise activities.