United Arab Emirates' privately-owned KBBO Group has picked London for listing its merged subsidiary, two sources said as the firm pushes ahead with plans to raise over $1 billion from a share sale.

The family investment firm, named after chairman Khalifa Butti Bin Omeir, is merging subsidiaries Centurion Investment and Infinite Investment LLC this year and completing a 40 percent share sale next year, sources told Reuters in August.

At the time the sources said Abu Dhabi-based KBBO Group would list the subsidiary either in London or New York.

"The listing venue will be London," the sources with knowledge of the matter told Reuters, declining to be identified as the matter is not yet public.

"The merger of the subsidiaries is nearing completion and the process is moving ahead," they said.

KBBO declined to confirm but a company statement on Friday said KBBO was assessing a range of strategic alternatives to support further growth and development of certain businesses, including an initial public offering, without giving details.

Companies from the UAE, including Abu Dhabi's NMC Health and Al Noor, have listed shares in London. There has been no IPO in Abu Dhabi since 2011 due to weak investor confidence.

Guggenheim KBBO Partners, a joint venture between New York-based investment firm Guggenheim Partners and KBBO, is acting as advisor.

KBBO's investments range from financial services to defence. It has stakes in healthcare provider NMC Group, foreign exchange business UAE Exchange and UAE Defence Technology Co, among other firms.