There has been some talk / confuse about this issue. But I believe in the latest DEV Blog discussing the Keystone Masteries someone in the comment section brought this up and a rioter replied that it does 3% of your HP as magic damage.
Of course this I wouldn't but full faith in this because Riot has never actually defined what stealing health is. I say this because Mordekaiser's W steals health, but also does magic damage. Where he will steal health from two targets but deal damage to any enemy within his ring. In the LoL Wiki they have the ability as healing and dealing damage, yet the tool tip says steals health.