Preliminary steps to list Porsche on the stock market are expected in the coming days, six people familiar with the matter said, adding executives at parent Volkswagen and family members were gathering to sell the idea to wary investors.

A flotation would test the investor appeal of Europe's largest automaking group as the continent grapples with the economic impact of the war in Ukraine, the threat of gas rationing and recession, and the most severe inflation in decades, driven by energy costs.

When stock market volatility has reduced the number of listings, a long-awaited public sale would also demonstrate the extent of appetite for a stake that gives a share in a prestigious brand but is too small to influence boardroom decisions.

The boards of Volkswagen and its biggest shareholder Porsche SE are expected to make a recommendation in the coming days, which would then go to the companies' supervisory boards for approval, the people said.

That would trigger an announcement of the initial public offering (IPO) or "intention to float," as soon as the first week of September, the people said, marking the beginning of a roughly four-week period for buyers to get ready to invest.

Still no final decisions have been taken, three of the people said, as uncertainty linked to the Ukraine war and an escalating energy crisis could lead management to decide to wait.

Volkswagen and Porsche SE announced initial talks on a listing on Feb. 22 and gave more details on Feb. 24, the day Moscow invaded Ukraine, marking the biggest attack on a European state since World War Two.

Even if management gives approval for canvassing investors, the group could halt the listing should attempts to secure demand fail, one of the people said.

The people declined to be named because they were not authorised to speak to the press.

Volkswagen, Porsche SE and Porsche AG all declined to comment.

Some investors are reluctant because just 12.5% of all stock will be sold on the open market.

One of the people told Reuters investors were taking a critical attitude and described the situation as fluid, but said a stock market listing was the likely outcome.

Another of the people acknowledged the bleak situation on markets saying the listing could yet be cancelled were it to worsen.